Although the price of rice decreases on the international market, it has risen in Bangladesh. To ensure the supply of basic items during the forthcoming Ramadan, the government has eliminated customs and taxes on rice imports. Additionally, farmers have collected the latest Aman rice harvest. Despite this, rice prices continue to grow. Domestic rice prices have risen by 7.14% in the last year. Meanwhile, the price of rice on the foreign market has dropped by 24.19% over the same period. This information was revealed in a report issued by the Bangladesh Trade and Tariff Commission (BTTIC).
Although the price of rice: In a study on the general status of vital products ahead of Ramadan, the BTTIC, citing TCB data, notes that the country’s annual rice demand ranges from 35 to 38 million tons. The need during Ramadan alone is 3 million tons. The country produces 40.06 million tons of rice every year. Based on this, the country should have an excess of rice. However, from July 1, 2024 to January 5, 2025, rice import Letters of Credit (LC) were opened for 474,666.43 tons. During the same timeframe, 184,526.51 tons of rice were imported.
According to the BTTIC data, coarse rice cost 50-55 Taka per kilogram on January 5, compared to 48-50 Taka at the same time last year. On the other side, on January 5, the international market price for rice per ton was 525 USD, down from 652 USD the previous year.
This means that the price of rice in the international market fell by 24.19% in the last year, while the price in the domestic market rose by 7.14%. Despite the waiver of tariffs and taxes, rice prices on the domestic market have not decreased. On October 20, the overall tariff on rice imports was decreased from 62.5% to 22%. On October 31, the remaining responsibilities were also relinquished. Currently, just a 3% advance income tax (AIT) is in effect.
Abdur Rashid, head of the Rice Mill Owners Association, said about rice: “If imports can be made at the government level, they should be done. Rice should be purchased from places where prices are lower than in our own country. Anyone who attempts to create a shortage through conspiracies should face consequences. It is necessary to import between 100,000 and 200,000 tons of quality rice. There is no lack of coarse rice. I can do a lot and understand a lot, but acting arrogantly will tarnish the interim government’s reputation and oath. I will consult with the trade consultant on this topic.”
In addition to rice, tariffs and taxes have been waived for imports of oil, sugar, dates, eggs, onions, and potatoes. However, no duty or tax exemptions have been granted for chickpeas (chola) during Ramadan. Similarly, no exemption has been granted for lentils (masoor dal). The BTTIC has raised concern about the market for chickpeas and lentils, which have not been exempted. The organization feels that because the prices of these two goods have risen in the worldwide market, it is critical to monitor the supply and demand for chickpeas and lentils on the local market.
According to BTTIC, the annual demand for chickpeas is from 180,000 to 200,000 tons, with 100,000 tons consumed during Ramadan. The country only produces 3,000 tons of chickpeas. The import volume ranges between 150,000 and 200,000 tons. Between July 1, 2024, and January 5, 2025, 48,980.68 tons of chickpeas were imported. From July 1, 2023 to January 5, 2024, the import was 17,446.58 tons.
According to BTTIC, the annual demand for lentils is 700,000 tons, with 100,000 tons consumed during Ramadan. The country produces 169,000 tons, and 500,000 tons are imported. Between July 1, 2024, and January 5, 2025, 251,561.54 tons of lentils were imported. Between July 1, 2023, and January 5, 2024, 190,087.92 tons were imported.
According to TCB sources, BTTIC reported that on January 5, the retail price of chickpeas in the domestic market was 120-130 Taka per kilogram, up from 90-95 Taka per kilogram on the same day in 2024. The price of chickpeas in the international market has risen by 25.49%, while in the domestic market it has grown by 35.14%.
According to data from the National Board of Revenue (NBR), lentils, particularly lentils, are the most commonly imported pulses. In the first five months of the fiscal year 2024-25, lentil imports climbed by 72% over the same time in the previous fiscal year. In the first five months, 220,000 tons of lentils were imported, compared to 128,000 tons in the same period during the fiscal year 2023-24. This represents an almost 72% increase in imports over the past five months.
Safi Mahmud, president of the Lentil Traders Association, told that prices for chickpeas and lentils would fall during Ramadan. During Ramadan, lentils are consumed in smaller quantities, lowering demand. Chickpeas are currently priced at 100 Taka per kilogram in wholesale marketplaces, lentils at 122 Taka, and giant lentils between 96 and 100 Taka. Prices will drop much more if new chickpeas arrive.
When contacted about the BTTIC’s worries concerning lentils, Dr. Moinul Khan, Chairman (Secretary) of the Bangladesh Trade and Tariff Commission, declined to comment.
According to the BTTIC research, the decline in worldwide market prices will have a favorable influence on the pricing of key imported commodities in Bangladesh. If fertilizer and fuel prices fall, the production of locally grown agricultural products and the supply of other goods may become more cost-effective. However, the value of foreign currencies used for import payments must be maintained, as well as the stability of revenue and monetary policies. In this context, Bangladesh Bank may take the appropriate steps.
According to the commission’s study, the government’s multifaceted attempts to keep the prices of necessary products in the local market under control have had a favorable impact. On the other hand, the dried onion manufacturing season has begun, resulting in a fall in local onion prices. As the supply of winter vegetables grows, egg consumption decreases, helping to stabilize egg prices in the local market. With international edible oil prices falling and levies and taxes on edible oil imports being reduced, local edible oil costs may fall during Ramadan.
Due to a decline in domestic rice output, the government has eliminated all customs and levies on rice imports. Letters of credit (LCs) have been opened to import about 475,000 tons of rice. Once imported rice reaches the domestic market, price stability is expected. In preparation for Ramadan, the government has offered duty remission and streamlined customs duties on specific dates. As a result of these activities, the trend of opening LCs for date imports has risen, and customers will be able to purchase dates at lower prices this Ramadan than last year.
However, due to the increase in the price of lentils and chickpeas in the foreign market, it is necessary to check the stock and supply of these two goods in the domestic market. The commission expects that a variety of government actions will keep the local market for critical commodities stable during Ramadan.
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