Benapole(Jashore): Rice imports from India have resumed through Benapole port after two and a half years, taking advantage of the government's tariff reduction to control the market.
The first consignment of 105 metric tons of rice entered the port on Sunday (November 17) night. Importers said that the price in the market will come down if imports increase.
Importer Mahabubul Alam Food Products of Jashore imported 105 metric tons of rice from India. The rice exporter is Sudharmayat Nirjat Private Limited of West Bengal. A C&F agent named Hossain & Sons is responsible for unloading the rice from Benapole port.
Ziaur Rahman, General Secretary of the Benapole Port Import and Export Association, said that in order to increase the supply of rice in the market, ensure the future food security of the people of the country, and keep the price of rice within the purchasing power of the common people and at a tolerable level, the NBR authorities issued a notification on October 20, reducing the existing import duty on rice imports from 25 percent to 15 percent, reducing the existing regulatory duty from 25 percent to 5 percent, and completely withdrawing the existing 5 percent advance tax, i.e. reducing the total tax burden from 62.5 percent to 25 percent.
Meanwhile, the imported price of 105 tons of imported rice is valued at 45,150 US dollars which is Tk. 54 lakh 18 thousand in Bangladesh currency. The price of imported rice per kilogram has fallen to about Tk. 51. Then there are other costs including transportation, port rent, bank charges. Accordingly, it will cost Tk. 53 per kilogram. This rice can be sold in the market for at Tk. 54.
It is known that the Indian government's Ministry of Commerce stopped exporting rice outside the country in 2022, citing the crisis. Later, rice exports were allowed, but traders did not export due to strict conditions. Finally, as the rice market in Bangladesh has increased recently, the government withdrew import duties to control the market. As a result, rice imports started through other ports of the country last week, but imports started through Benapole port on Sunday. Importers hope that imports will increase as India has also opened up the price of rice exports and that prices in the domestic market will soon be under control. Rice trader Rahmat said that on November 11, the Ministry of Food gave permission to 24 importing companies to import rice in an order. It allowed the import of 120,000 metric tons of boiled rice and 55,000 metric tons of parboiled rice. Among the importers, 12 importers from Jashore area have received permission to import 73,000 boiled rice and 19,000 parboiled rice. All the rice must be imported and marketed by December 10. However, like other times, traders are doubtful whether everyone will be able to import rice this time too because in the process of approving imports, relatives are given permission without identifying the real traders.
Hemant Kumar Sarkar, Deputy Assistant Director of the Benapole Checkpost Plant Quarantine Center, said that only one importing company (Mahabubul Alam Food Products) has taken IP certificates for 105 metric tons of rice in the first shipment from them. Another 100 metric tons of rice from this company is scheduled to enter Benapole Port in the afternoon.
On July 20, 2023, India banned the export of cooked and parboiled rice outside the country. Before that, rice import from India through this port had been stopped since November 2022. However, port sources said that only 280 metric tons of rice were imported through Benapole Port in April this year.
Meanwhile, the conditions of the Food Ministry state that the allocated importers will have to market all the rice in Bangladesh by December 10. The quantity of imported rice, warehousing and marketing information must be informed to the concerned district food controller, IPs in excess of the allocation cannot be issued, imported rice cannot be repackaged in the name of any other organization. Imported rice must be sold in sacks.
Benapole Land Port Director (Traffic) Mamun Kabir Tarafdar said that a consignment of 105 metric tons (3 trucks) entered Benapole Port this morning. Instructions have been given to all concerned to quickly check the documents after customs clearance.
Earlier, the Food Ministry had allowed 80 companies in the country to import 2 lakh 7 thousand metric tons of rice in two phases on March 21 and April 16 this year. Despite the permission, traders have not been able to import rice so far due to the imposition of customs duty on rice exports by the Indian government and the dollar crisis in commercial banks