Aman rice purchase deadline extended

The government has extended the deadline for aman rice procurement by two weeks, after failing to buy the targeted 3 lakh tonnes by February 28, an official said yesterday.
The extension to March 15 comes as many millers failed to deliver the staple due to higher price, said Md Badrul Hasan, procurement director of Directorate General of Food.
"Many of our suppliers have informed us that they faced difficulties in getting rice as the market price is much higher than the government procurement rate," he said.
Over the past month, the wholesale price of rice rose 10.4 percent to Tk 27.5 a kg in Dhaka city, according to a report by the food planning and monitoring unit.
The recent shutdown owing to political turmoil also affected supplies, he said.
The DG Food set off on December 9 to purchase its targeted 3.0 lakh tonnes of aman rice at Tk 26 each kilogram through contracts with millers.
The state grains buyer has so far secured 2.20 lakh tonnes of rice out of its contract for 2.80 lakh tonnes with millers.
“We could not sign contracts to ensure supply of the remaining 20,000 tonnes,” said Hasan, adding that he expects the procurement target to be met.
"We are getting the delivery -- it is a good sign."
KM Layek Ali, convener of Bangladesh Rice Mills Association, said they have sought for time extension from the government fearing many millers would fail to deliver on time.
“The majority of the 16,000 suppliers could not make the full supply against their contracts,” he said, adding they wanted up to March 31 to make their delivery.
Many husking mill operators could not dry paddy properly because of the bad weather in January.
“At the same, prices began edging up. Many millers have to supply to the government by incurring losses because of the increased prices."
"We supplied to the government in the past months because we could purchase paddy at lower prices. Now that margin is no more," Ali added, while urging for support from the government due to the increased prices.
Millers failing to deliver against contracts will face penalty like fund forfeit or blacking listing, Hasan said.