Global Rice News

Rice import in Bangladesh has become uncertain due to higher import duties imposed by Bangladesh and India, which has led to a rise in global prices. To address the increasing retail prices of rice in the domestic market, the food ministry has permitted 31 companies to bring in 83,000 tonnes of rice from the world market. The imported rice must be brought and marketed within April 25. However, despite the government’s reduction of import duties to 15.25% in March from 62.5%, importers are not showing much interest in importing rice.

Nafisa Agro Ltd, a company based in Mymesingh, has sought to import rice from India this year. They have received an import order from the agriculture ministry to bring 1,000 tonnes of parboiled rice and 1,000 tonnes of white rice. However, India has imposed a 20% export duty on parboiled rice since August last year. In addition, Bangladesh’s import duties are still above 15%. The cost of Indian parboiled rice, including the 20% duty, is $580 per tonne. Another 15% duty will be imposed upon entrance in Benapole. Importers are waiting for a decrease in global prices before making any decisions.

Despite the uncertain rice import situation, the local mill-gate price of coarse and medium rice is still cheaper than import prices from countries like India, Thailand, Pakistan, and Vietnam. It is worth noting that the Indian national election will begin this month and the ruling party-led government in India has imposed restrictions on the shipment of various food products. The restrictions are expected to be eased after the Indian election.

Farm economist and value-chain expert, Prof Golam Hafeez Kennedy, believes that allowing rice import in a volatile market is a commendable move. He suggests that the government should help the private sector import rice from India without any duties. Additionally, alternative markets such as Thailand, Vietnam, and Pakistan should be considered to address any potential decline in production. Prof Hafeez also emphasizes the need for a sound production in the ongoing Boro season, which contributes more than 55% to the demand. He believes that continuing to permit rice import will encourage millers to release rice on time.

As of Monday, the market prices of different types of rice in the capital are as follows: coarse rice like guti swarna and hybrid variety (Tk 54-56 per kg), medium-quality BRRI dhan 28 (Tk 28 per kg), swarna-5 (Tk 65-68 per kg), and different varieties of finer rice like miniket, jeera, and najirshail (Tk 75-100 per kg).

According to the monthly data of the UN Food and Agriculture Organisation (FAO), rice prices have increased by 12.3% in February 2024 compared to the previous year. The prices of Indian and Pakistani parboiled rice range from $548-610 per tonne, while Vietnamese and Thai parboiled rice range from $602-640 per tonne.

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