Sunday, September 23, 2018 | ePaper

Coming tariff raises paddy price

  • Print
Economic Reporter :
The price of rice paddy has begun to rise in anticipation of the tariffs to be reintroduced on rice imports in the government's budget for the coming fiscal year.
The impact of the tariffs has yet to be felt in the rice market due to the relatively low trade after Eid and lower rice imports, but traders say rising paddy price may soon affect the price of rice.
According to the director general of the Food Directorate, sufficient food reserves have prompted the government to purchase rice from domestic sources instead of imports this season.
Finance Minister AMA Muhith had announced the reintroduction of the 28 percent tariff on rice imports in the prospective budget for the 2018-19 fiscal year after it was reduced following a poor harvest and flood damage in 2017.
Muhith said the tariff was aimed at protecting farmers and ensuring that they received a fair price.
File Photo File Photo "The government wants farmers to receive fair prices for rice paddy," said Bangladesh Auto Major and Husking Mill Owners' Association General Secretary KM Layek Ali. "If that happens then rice prices could surely rise."
The new tariffs are preventing rice imports and have raised the price of rice paddy by Tk 100-150 per maund, he said.
"The government is aware of the coming elections and they understand the benefits to farmers and consumers of the situation. I do not wish to say more on the matter. We just buy paddy from farmers and sell rice."
Kushtia Attara Rice Mill Owner Rezan Ali told that the price of rice paddy had increased by approximately Tk 150 per maund.
"If the price of rice paddy rises, the rice of rice must also rice. At that rate, the price of rice may rise by Tk 1-2."
In Kawran Bazar on Friday, the price of a 50kg sack of Nazirshail rice was Tk 2,800-3,000, that of Miniket was Tk 2,700-2,800 and that of BR-28 was Tk 2,100-2,200.
At some wholesale stores in Babubazar Nazirshail was selling for Tk 2,750-2900 per sack, Miniket was selling for Tk 2,600-2,750 per sack, BR-28 was selling for Tk 2,100-2,150 per sack and parboiled BR-29 for Tk 2,000-2,100 per sack. Traders say the prices were approximately the same around Eid.
Director General Md Arifur Rahman told that the tariffs will only have a small effect on imports.
File Photo File Photo "The good news is that there is no shortage of domestic rice, so falling imports will have little effect. The price of rice paddy will rise a bit due to the tariff, so the price of rice will rise by Tk 1-2."
Most domestic demand is for large-grained rice, said Rahman, saying that if the price rises then the government would institute an Open Market Sale for a targeted group if the price rose.
Food reserves this year are 'quite good' after the imports of 4 million tonnes of rice last year, he said. The food directorate chief said he does not foresee any major challenges in the coming five to six months and no real need for imports.
But, as tariffs rise, the price of Basmati and other fine-grained rice may rise as well, he said.
According to the Food Ministry's Food Planning and Monitoring Unit, the government currently has 1,323,000 metric tonnes in food reserves.
Of these reserves approximately 1,066,000 tonnes are rice and 257,000 tonnes are wheat. An additional 52,000 tonnes of food grains are awaiting clearance at the ports.

More News For this Category

Robishop offers pre-booking for Motorola devices

Robishop offers pre-booking for Motorola devices

Business Desk :The premiere ecommerce site, robishop.com.bd, is offering exclusive pre-booking facility for purchasing the latest handsets from Motorola.Customers can pre-book Motorola Moto E4 Plus, Moto E5 and Moto

Md. Aminuzzaman Bhuiyan, Chairman of Union Insurance Co. Ltd, presiding over its Annual General Meeting at a hotel in the city on Thursday. The Founder Chairman of the Company Muzaffar Hossain Paltu, other directors, shareholders and Chief Executive Officer Talukder Md. Zakaria Hossain and Company Secretary Md.  Iqbal Rashidi were also present.

Md. Aminuzzaman Bhuiyan, Chairman of Union Insurance Co. Ltd, presiding over its Annual General Meeting at a hotel in the city on Thursday. The Founder Chairman of the Company Muzaffar Hossain Paltu, other directors, shareholders and Chief Executive Officer Talukder Md. Zakaria Hossain and Company Secretary Md. Iqbal Rashidi were also present.

.

Online skill dev portal launched

BSS, Dhaka :Access to information (a2i) programme with the support of ICT Division, UNDP and USAID on Saturday launched 'Skills Portal' (skills.gov.bd) in the first session of the National

PRAN signs $5m export deal with Netherlands

Business Desk :Engel Foreign Food, popular chain shop of the Netherlands, will purchase products worth of $5 million from PRAN, a leading food processor in Bangladesh.PRAN will export its

Huawei lauds BD ICT talents

UNB, China (Shenzhen) :Huawei's global CSR head Holy Ranaivozanany has highly appreciated Bangladesh saying that it has done a lot to reach the goal of 'Digital Bangladesh'.Addressing the closing

Britain's trade options after Brexit

AFP, London :European Union leaders used a summit in Salzburg this week to reject British Prime Minister Theresa May's plan for the economic relationship between the two sides after

Kazi Masihur Rahman, Managing Director of Mercantile Bank Limited, handing over a donation cheque of Tk 5 lakh to Dr. Md. Mazibul Hasan Chowdhury Shahin, General Secretary of Nilphamari Diabetic Association at the Bank's head office on Wednesday.  Md. Quamrul Islam Chowdhury and Mati Ul Hasan, AMD's, Adil Raihan, DMD of the bank were also present.

Kazi Masihur Rahman, Managing Director of Mercantile Bank Limited, handing over a donation cheque of Tk 5 lakh to Dr. Md. Mazibul Hasan Chowdhury Shahin, General Secretary of Nilphamari Diabetic Association at the Bank's head office on Wednesday. Md. Quamrul Islam Chowdhury and Mati Ul Hasan, AMD's, Adil Raihan, DMD of the bank were also present.

.

Abu Reza Md. Yeahia, DMD of Islami Bank Bangladesh Limited and Md. Asaduzzaman, Managing Director of Best Electronics, exchanging an agreement signing document at the Bank's head office in the city recently. Under the deal, Khidmah (credit) cardholders of the Bank will enjoy EMI facilities in case of purchasing electronics goods from any outlet of the electronics company. Md. Mahbub ul Alam, CEO, Mohammed Monirul Moula, AMD of the Bank and other officials from both the organizations were also present.

Abu Reza Md. Yeahia, DMD of Islami Bank Bangladesh Limited and Md. Asaduzzaman, Managing Director of Best Electronics, exchanging an agreement signing document at the Bank's head office in the city recently. Under the deal, Khidmah (credit) cardholders of the Bank will enjoy EMI facilities in case of purchasing electronics goods from any outlet of the electronics company. Md. Mahbub ul Alam, CEO, Mohammed Monirul Moula, AMD of the Bank and other officials from both the organizations were also present.

.

Stocks close week down

Economic Reporter :Stocks finished the week down on Thursday with falling trends of all major price indices at Dhaka and Chittagong Stock Exchanges as the daily transactions declined amid

FBCCI team off to USA to attend UNGA

Business Desk :A high-powered business delegation of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) leaves Dhaka today for the USA to attend the 73rd UN General