Rice-wheat import spending doubles
Published on: January 5, 2022.
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Bangladesh’s spending on rice and wheat import rose by 93 per cent in the July–November period of the current fiscal year 2021–22 compared with the same period of FY21 amid the government claim of the nation’s self-sufficiency in the staple food.
The import of the key food grains started growing sharply in the second half of FY21 and the trend is continuing in FY22.
Also, the prices of rice are on the rise on the local market.
The value of the imported rice in July–November of FY22 rose by $509.89 million to $1.06 billion against $548.04 million in the same period of FY21, the latest Bangladesh Bank data showed.
Rice import spiked after the government decided in December 2020 to allow private businesses to buy rice from abroad with a view to controlling prices of the staple on the local market.
In a bid to facilitate import of the commodity and to boost its stock amid soaring prices, the government had cut the import duty on rice to 25.75 per cent from the previous 62.5 per cent.
The rate was effective till October 2021.
Nuruzzaman, an importer at the border township of Benapole in Jashore, said that the import of rice witnessed a surge in July–November 2021 due to the shortage of the staple in the country.
‘I will not make any comment on the local production and consumption of rice. We have to realise why the government has allowed import of rice. Obviously, it is a matter of demand and supply,’ he said.
Nuruzzaman, proprietor of Islampur Rice Mill, said that despite large quantities of rice import the item’s price had not come down on the local market as the imported volume could not meet the market demand amid the shortage.
In FY21, the country’s import spending on rice and wheat was $1.81 billion against $1.49 billion in FY20.
Bangladesh spent $1.45 billion on importing rice and wheat in FY19 against $3 billion in the previous fiscal year.
The country’s rice import was around 8 lakh tonnes in the July–November period of FY22.
Food ministry officials said that the ministry was trying to raise the rice stock at the government warehouses by making purchases on both local and international markets.
According to Trading Corporation of Bangladesh data, the coarse variety of rice sold at Tk 45–Tk 50 a kg on January 4, 2022 whereas the variety sold at Tk 38–40 a kg on January 4, 2020.
Source: https://www.newagebd.net/article/159124/july-nov-rice-wheat-import-spending-doubles
