Take steps to discourage rice imports
A parliamentary standing committee yesterday advised the food ministry to take steps to discourage rice imports to protect growers.
"We have sufficient domestic production now. So, rice imports should be discouraged for the time being, to safeguard the interests of farmers," Md Abdul Wadud Dara, chairman of the parliamentary standing committee on food ministry, told The Daily Star by phone.
The panel made the recommendation at a meeting at the parliament building, citing media reports on the rise in rice imports, particularly from India.
Food Minister Md Qamrul Islam, members of the panel and top officials of the food ministry were present at the meeting.
Rice imports in just five and a half months of this fiscal year crossed last year's total, as businessmen found foreign produce cheaper than local output. Bangladesh's private importers brought in 4.45 lakh tonnes of rice from July to December 17, exceeding last year's total import of 3.74 lakh tonnes, according to food ministry data.
Surging rice imports supported by an absence of duty and the aman harvests, the year's second largest rice crop, have already lowered prices in the domestic market, affecting both farmers and local millers.
Retail prices of all types of rice, irrespective of quality, have declined between one percent and 3.53 percent in Dhaka markets, according to data from state run Trading Corporation of Bangladesh.
In the face of spiralling imports, many millers are avoiding milling of paddy, fearing stiff competition from imported rice, Md Abdur Rashid, president of Bangladesh Auto, Major and Husking Mills Association, said last week.
He demanded the government impose duties rice imports so that farmers do not feel discouraged to grow the staple in the upcoming boro season.
The government has kept a zero-duty facility on rice imports since fiscal 2006-07, according to National Board of Revenue. Dara said the parliamentary committee discussed the issue following media reports and favoured taking measures to discourage rice imports by consulting related ministries.
Islam however said rice imports are negligible considering overall demand and production in the country.
Production rose to 3.44 crore tonnes in fiscal 2013-14, from 3.38 crore tonnes a year ago, according to Bangladesh Bureau of Statistics. Bangladesh requires nearly 1 lakh tonnes of rice a day, said Islam.
"There is nothing to worry about. However, we will discuss the matter with the commerce ministry on whether duty benefits for rice import can be withdrawn."
Some imports are aromatic rice and some low quality rice is also being imported as cattle feed, Islam said.
"I don't think such imports can influence the market. But a section of people are trying to create confusion when we are exporting rice abroad."
On the recent fall in rice prices, he said prices usually go down during the peak harvesting period.
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