Govt decides to import rice after 4 years to break cartels

The government has decided to import rice after four years to tackle the price hike of the essential commodity by a syndicate of unscrupulous traders.

Alongside procuring rice from domestic sources, it is planning to import 2-3 lakh tonnes of rice on a G-to-G (government-to-government) basis in the current 2020-21 fiscal year, said sources in the finance and food ministries.

The decision to import rice was taken through a virtual meeting of the Food Planning and Monitoring Committee on October 28, with Food Minister Sadhan Chandra Majumdar in the chair.

As per the meeting minutes, rice stock will be kept at a satisfactory level by the end of this financial year after meeting the government distribution demand, among others.

Food Secretary Moshammat Nazmanara Khanum, who was present at the meeting, said, “It has been decided that rice will be imported if the situation demands.

"There was a lot of rain this time around, triggering floods. So, Aman production may not be at the expected level," she added.

Even if Aman production does not get affected, the government may import rice. It will take just three months, the secretary said.

"We are trying to break the syndicate behind the rice price hike. If the syndicate of millers and traders increases the rice price, we will keep the price within the reach of consumers by importing rice,” she said, adding that the government would not import rice privately by reducing tariffs.

Agriculture Minister Md Abdur Razzak, Finance Minister AHM Mustafa Kamal, Health Minister Zahid Malek, Commerce Minister Tipu Munshi, Fisheries and Livestock Minister SM Rezaul Karim, Finance Secretary Abdur Rouf Talukder, and Agriculture Secretary Mesbahul Islam, attended the meeting.

As the country has achieved self-sufficiency, rice has not been imported by the government since the 2016-17 fiscal year.

According to the food ministry, 4.18 lakh tonnes of rice were imported privately in the last financial year but no rice was imported by the government.

Former advisor to the International Monetary Fund (IMF) Dr Reza Kibra said, "It is a good decision to import rice to meet the local demand during the Covid-19 pandemic.”

The government has to ensure that the rice import does not affect local farmers getting fair prices of their produce, said the economist.

The local administration has to ensure the fair distribution of rice among poor selection of rural people, he also underscored.

Until October 28 in the current fiscal, 2.16 lakh tonnes of wheat have been officially imported, the meeting of the Food Planning and Monitoring Committee was told.

During the same period, only 60 tonnes of rice and 16.91 lakh tonnes of wheat have been imported privately.

According to the meeting minutes, there is a provision in the budget to procure 24.55 lakh tonnes of rice from domestic sources and 1 lakh tonne of rice through import in the current fiscal year.

Already 5.60 lakh tonnes of rice have been collected during the Boro season, said a food ministry source, adding that the Boro procurement target was not met.

According to the food ministry, the government has a stock of 7.09 lakh tonnes of rice at present.