Free import to make essentials affordable

The government yesterday proposed continuation of zero-tariff on the imports of various essential commodities to keep prices within the reach of the majority of people.
However, Finance Minister AMA Muhith in his budget speech did not make any pledge to curb price spiral of essentials in the domestic market.
During the last 12 months, prices of medium-quality rice have increased as much as 33.33 percent to Tk 32-36 a kg. Price of coarse rice rose by 31.82 percent to Tk 28-30 a kg, despite high production. Prices of flour also shot up since June 10, 2009, according to Trading Corporation of Bangladesh (TCB) data.
To keep essential food prices stable and within people's purchasing capacity, Muhith promised to make TCB an efficient and effective institution.
As per his proposal, importers will be able to import rice, wheat, onions, pulse and edible oil enjoying zero customs duty.
Economists hailed the continuation of zero duty on imports of essential commodities. They said it would help curb sharp increase of prices of imported essential commodities.
"It's a good initiative," said economist Mahabub Hossain, also executive director of Brac.
Productivity of farms has to be increased to keep prices of essentials such as rice within reach of majority of the people, he added. For this, emphasis should be given to introduce new agricultural technologies for farmers, he said.
Muhith, however, suggested that specific duty on sugar imports be re-imposed. In the 2009-10 fiscal year, the specific duty on raw sugar was withdrawn due to sharp rise in its price in the world market.
He said there was a good sugarcane harvest this year and proposed Tk 2,000 per tonne duty on raw sugar imports and Tk 4,000 per tonne duty on refined sugar imports.
The finance minister said the government has widened the food security programme.
"We know the first victim of inflation is the poor people. We have, therefore, widened the ambit of food security programme," he said.