Economists alert to risk of farmers being deprived of fair price.

JASIM UDDIN HAROON 

Rice imports into Bangladesh spiked by nearly a record 5,400 per cent in the first two months of this fiscal year as traders rushed to cash in on duty waivers coupled with price fall in India.
Economists alert to risk of farmers being deprived of fair price as government procurement has been “Satisfactory” and the next harvest of rice is not far off now.
Rice import typically carries a total import duty of around 62.5 per cent-a rate seen as a fiscal measure for price support to domestic growers of the staple.
But the tariff now stands pared down to only 2.0 per cent following government intervention to encourage large-scale private imports to stabilise local market amid persistent food inflation.
The imports are being led entirely by private traders as the relevant government departments have yet to begin their own purchases of the staple grain.
According to official data, rice imports-mostly by traders from the country’s northern belt-amounted to nearly US$55 million during the period under review, compared to just US$1.0 million a year earlier.
Md Moniruzzaman, director for procurement at the Directorate- General of Food (DG Food), told The Financial Express that Indian rice prices remained comparatively lower this year, which has made import more attractive.
“The prices of the staple have stayed cheaper in India. This may be a key reason behind the import surge,” he said.
He mentions that government import has not yet started, but a deal to import 50,000 tonnes of rice is now being finalised. “This is fully a private-sector import so far.”
Traders from the northern belt, particularly in Dinajpur, Rangpur and Bogura, have been among the largest importers.
Lalit Keshra of M/S Sairam Enterprises in Dinajpur told the FE that his company brought in shipments from India to build up a stock taking advantage of the pared-down duty.
“With the duty now just 2.0 per cent, and prices of non-basmati rice in India remaining relatively low this year, importing made solid business sense,” he said.
The food department has set a target to procure 900,000 tonnes of rice during the ongoing fiscal year to replenish public food stock.
India, which had earlier imposed restrictions on rice export, lifted its ban on shipments to Bangladesh in August, allowing export of non-basmati rice under special arrangements.
In response, Dhaka authorised private traders to import about 500,000 tonnes of rice duty-free to cool down soaring food prices and tame high inflation at home.
However, some economists say the government decision to ease import restrictions could help stabilise prices in the short term, but warn that prolonged reliance on imports may weaken domestic procurement efforts unless local farmers receive fair prices during the upcoming Aman season.
“Domestic procurement by the relevant government department remained satisfactory so heavy reliance on import might impact both production and procurement,” says Dr Zahid Hussain, an independent economist of Bangladesh.

Published Date: October 13, 2025