Govt cuts rice import duty by 37% to stabilise market
In order to increase the supply of rice in the market, the government has cut import duty on rice by 37%.
According to a gazette notification issued by the Ministry of Finance today (20 October), the existing customs duty on rice has been reduced from 25% to 15% and the existing regulatory duty has been reduced from 25% to 5%.
Also, the existing 5% advance tax has been completely withdrawn.
The move comes as the recent floods in the country have caused an estimated loss of about 10.87 lakh tonnes of rice production, primarily Aman.
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Flood-related loss and supply disruption have driven up prices for essential items, including rice, affecting average consumers.
In response, the government has initiated the import of 5 lakh tonnes of rice and is expected to allow private imports soon to ensure food security and stabilise prices, which have increased by Tk 5-6 per kg over the past month.
According to food ministry data, the government currently has rice stocks of around 12.16 lakh tonnes.
However, the rice stock is gradually depleting as the government distributes rice to one crore families each month at subsidised prices via the OMS programme.
To tackle the impending shortage and price hikes, the Chief Adviser's Office authorised the food ministry to import rice under the G2G modality.
The food ministry sent a letter to the National Board of Revenue on 29 September, requesting a reduction in import duties from 62.5% to 5% for allowing private imports.
In the letter, the food ministry said the severe floods affecting Aush-Aman production in 14 districts could trigger a price surge if private imports are not facilitated.
