CHATTOGRAM Nov 19: Rice market is witnessing a declining trend in prices in the port city. The prices of rice have declined by Tk 300 per bag of 50kg.
According to trading circles prices of rice have marked a sharp decline of Tk 250 to Tk 300 per bag of 50kg in Chattogram market on Tuesday within two weeks.
Omar Azam, General Secretary of Chaktai Rice sellers Association said in the wholesale market of Chattogram, in Khatunganj and Chaktai, a 50kg bag of coarse (Atap) is now selling at Tk 2,600, while it was sold at Tk 2,900 last week, Miniket is now selling at Tk 2,800 per bag but last week it was sold at Tk 3,100, Kataribhog is selling at Tk 3,500 while it was sold at Tk 3,700 last week. Swarna is now selling at Tk 2,800 while it was sold at Tk 3,200.
Egg is now selling at Tk 155 per dozen. Earlier it was sold at Tk 180 per dozen last week. Following the slashing of import duty by the National Board of Revenue (NBR), the prices of eggs declined to Tk 155.
According to the trading circles in Chattogram, the new arrival of local rice and the imported rice from India have increased remarkably resulting in the decline in prices in the market.
Meanwhile, to keep rice prices affordable to the public, the NBR reduced both import duty and regulatory duty and also withdrew advance tax.
The import duty on rice has been reduced from 25 per cent to 15 per cent, and the regulatory duty from 25 per cent to 5 per cent. The 5 per cent advance tax has also been entirely withdrawn.
According to the NBR, these reductions will lower the cost of rice imports by Tk 14.40 per kg.
Besides, Bangladesh Bank (BB) has allowed delayed payment of bills for importing 11 essential food items ahead of the holy month of Ramadan.
The products are rice, wheat, onion, pulses, edible oil, sugar, eggs, chickpeas, peas, spices and dates.
On November 11, the foreign exchange policy department of BB issued a circular in this regard and sent it to the top executives of the bank for immediate execution.
The notification stated, "In order to maintain the price at a reasonable level and smooth supply of necessary food items during the holy month of Ramadan, it has been decided to allow import of rice, wheat, onion, pulse, edible oil, sugar, egg, chickpea, pea, spices and dates on usage terms on up to 90 days under supplier's/buyer's credit."
The central bank says that this decision has been taken to facilitate transactions in the case of imports and the facility will be applicable till March 31, 2025.
Meanwhile, after a two-year hiatus, rice imports from India have resumed through the Benapole Land Port.
Three trucks loaded with 105 tonnes of non-basmati rice, imported by Mahabubul Alam Food Products from Jashore, entered the transhipment yard at the port on Sunday night.
Another 100 tonnes of rice from the same importer are expected to arrive soon.
Importers said that due to the rising price of rice in the domestic market, the government waived the import duty, leading to the resumption of rice imports starting Sunday. As India also lifts price restrictions on rice exports, the imports are expected to increase, helping to stabilize the domestic market price.
The government authorised 24 importers, including 12 from the Jashore to bring in 73,000 tonnes of parboiled rice and 19,000 tonnes of Atap rice. However, traders are sceptical about whether all authorized imports can be completed before the December 10 deadline.
India had imposed restrictions on exporting parboiled and Atap rice in July 2023, which were recently relaxed.
The importers are required to distribute the rice in local markets by December 10. They must also report the quantity imported, warehoused, and marketed to the district food controller.
