Govt decides to import rice amid price surge after millers renege on agreed price

The government has decided to buy rice from abroad while reducing the import duty, as local millers refused to supply the staple at the agreed price.

“The government will import rice to keep the market stable,” the Ministry of Food said in a statement on Tuesday, citing Food Minister Sadhan Chandra Majumder.

The minster had reiterated the government’s previous plan to import rice in case the millers refuse to supply the rice at the agreed price, despite a bumper harvest of paddy in the Boro season, reports bdnews24.com.

The government decided to purchase 1.9 million tonnes of Boro rice this year. They will buy 1 million tonnes of parboiled rice at Tk 36 per kg from millers and 1.5 million tonnes of Atap rice or sundried rice at Tk 35 per kg. It plans to buy 800,000 tonnes of Boro rice directly from the farmers.

Refusing to sell the rice at a government-quoted price of Tk 36 per kg, some mill owners want a price increase, jeopardising the government’s plan to stockpile rice as part of its efforts to ensure food security during the coronavirus crisis.