Bangladesh News

The government yesterday approved a proposal to import 5 lakh tonnes of rice from India.

Meanwhile, the local traders began importing rice through Benapole land port yesterday evening, as India withdrew the embargo on rice export imposed on February 8.

The local markets witnessed another spate of increase in prices of coarse rice by Tk 1 yesterday as part of the continuing trend of sky rocketing prices of rice that started immediately after the Indian ban.

Myanmar yesterday agreed to consider positively a Bangladesh proposal of importing 3 lakh tonnes of rice from the country every year, said a foreign ministry press release.

At yesterday’s meeting of the Advisory Committee on Purchase, the government also decided to procure another 67,000 tonnes of rice from local importers at a cost of around Tk 200 crore.

“Import of 5 lakh tonnes of rice from India under a state-to-state agreement will be completed within 75 days of the signing of the contract,” Finance Adviser Mirza Azizul Islam told reporters after the meetings of advisory committees on purchase and economic affairs.

Director General of Directorate of Food Molla Waheeduzzaman is expected to sign the contract with the West Bengal Essential Commodities Supplies Cooperative Limited (WBECSCL), who will supply the rice, within a couple of days. He is in Kolkata at present leading a delegation of the directorate.

The purchase committee also approved import of 3.90 lakh tonnes of fuel from the United Arab Emirates (UAE).

The decision to import refined petroleum from the UAE, a new source of fuel for Bangladesh, was taken with a view to ensure smooth supply of diesel to the farmers for irrigation during the ongoing winter crops cultivation, meeting sources said.

The Advisory Committee on Economic Affairs approved the proposal of the energy ministry for the import of fuel without any tender, also to take place under a state-to-state deal.

“The Bangladesh Petroleum Corporation has estimated that the cost of 3.90 lakh tonnes of refined petroleum is Tk 2,082 crore,” a meeting source said. Of the fuel, 3.30 lakh tonnes are diesel.

Earlier, the purchase committee approved the food ministry proposal to purchase 5.67 lakh tonnes of rice at a cost of Tk 1,596 crore.

Talking to the reporters, Mirza Aziz hoped that the import of rice from India would help boost the government stock.

As per the approved proposal, 5 lakh tonnes of rice would be imported from India at the cost of Tk 1,396 crore.

Average purchase rate of the rice has been fixed at $399 per tonne. Starting from this month, the shipments will reach the country in phases by road, sea, river ways and railways.

As per the proposal, this bulk import would take place without any tendering process as there is an agreement signed between the two governments to this effect, officials said.

In addition, the government will procure 25,000 tonnes of rice from a local importer at the cost of $402 per tonne and another 42,000 tonnes from 13 importers at the cost of $420-$430 per tonne.

The purchase committee also approved two other proposals placed by the industries ministry for importing a total of 20,000 tonnes of phosphoric acid for two BCIC (Bangladesh Chemical Industries Corporation) fertiliser factories in Chittagong at the cost of Tk 102 crore.

The local traders heaved a sigh of relief following the withdrawal of the ban on rice export by the Indian government yesterday.

Customs authorities at Benapole and Indian Petrapole check posts issued 52 gate passes for shipments of rice. Until evening, a total of 280 tonnes rice entered through the Benapole land port.

India, however, put a condition that rice export is allowed only for those who opened letters of credit (L/C) at over US $500 per tonne, reported a correspondent from Benapole.

According to an order of India’s Director General of Foreign Trade, the L/Cs opened at below US$ 500 has been cancelled making uncertain the fate of import of 12,000 tonnes rice, as L/Cs for the quantity has been opened at US $390 per tonne.

The central government of India took the decision after holding a meeting with its exporters’ association yesterday.

Prices of both local and Indian varieties of rice shot up by Tk 50 to Tk 200 per maund in the wholesale markets in Bangladesh following India’s embargo on rice export.

Coarse rice was selling in the retail markets at Tk 30 to Tk 32 per kilogram (kg) yesterday, while it was being sold at Tk 28 to Tk 29 just a week back.

The wholesalers at Karwan Bazar said that the price of each maund was Tk 3,440 last week, but it was Tk 3,620 yesterday, with an increase by Tk 5 per kg.

Many of the retailers believe that the price hike is a result of artificial crisis created by the importers and distributors.

Meanwhile, Myanmar yesterday said that it would consider about exporting 3 lakh tonnes of rice to Bangladesh as the country has surplus rice, says a foreign ministry press release on the 3rd Foreign Office Consultations between the two countries.

Foreign Secretary Touhid Hossain led the Bangladesh delegation while Myanmar Deputy Minister for Foreign Affairs Kyaw Thu led his side during the talks in the capital, Nay Pyi Taw.

At the meeting, the Myanmar foreign minister said that his country has one million tonnes of surplus rice for export per annum and exporting 3 lakh tonnes of rice to Bangladesh on regular basis should not be a problem, the press release added.