Rice import begins at reduced duty

Businesses yesterday began importing rice at a duty of only 2 percent after the government lifted the tariff to stabilise the domestic market, traders and the National Board of Revenue (NBR) officials said.

The move came after the food ministry on August 10 permitted 242 traders to import 5 lakh tonnes, following recommendations from the tariff commission and other agencies.

"After opening letters of credit (LCs), we have been able to import rice today [Tuesday]," said Lalit Keshra, proprietor of M/S Sairam Enterprise in Dinajpur yesterday evening.

There was an ambiguity over the duty as customs officials initially informed that the rate was nearly 62.5 percent previously prevented importers from releasing rice from customs, he said.

"Importing rice with a 62.50 percent duty would push higher retail prices, which was not viable," he said.

According to NBR sources, a Statutory Regulatory Order (SRO) issued late last year waived 62.5 percent of import duties on rice. However, the validity of that SRO expired in April this year. As a result, importers had to pay full duties again, effectively halting rice imports and causing domestic prices to rise.

Following recommendations from the Directorate General of Food and other government agencies, the duty waiver on rice imports has been reinstated.

Although no new SRO has been issued yet, officials said rice can still be imported under the provisions of the previous order. They added that a separate SRO may also be issued if necessary.

SM Akram Somrat, an assistant commissioner of Hili Customs, also confirmed the launch of import activities from yesterday.

After deducting 2 percent duty, prices of coarse and medium rice might reduce by Tk 3-4 per kilogramme, he expects.

Yesterday, in the Dhaka market, medium grain rice was sold at Tk 60 to Tk 75 per kilogramme. Over the past year, the price has increased by 17.39 percent, according to Trading Corporation of Bangladesh.

On the other hand, coarse rice was sold at Tk 55 to Tk 60 per kg in the Dhaka market. Over the past year, the price has increased by 7.48 percent.