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Price of Rice Highest after Liberation.

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The crisis that could have been avoided
Abu Siddique
Published at 12:48 AM July 05, 2017
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Photo:Syed Zakir Hossain
The current retail price of coarse rice is Tk 48 – which is Tk 18 higher than what the price was this time last year

Bangladesh is seeing a record hike in rice prices this year, even after the harvest season, as the government reserve of rice has hit a record low in at least a decade.

Rice traders and farmers say the government’s persistent stance against increasing its reserve by importing rice, keeping the import duty at 28% to restrict import by private traders, damage to boro paddy due to a recent flash flood in Haor areas, and a lack of monitoring over the private sector are the major reasons behind the crisis.

According to the Ministry of Food, the current retail price of coarse rice is Tk48 – which is Tk18 higher than what the price was this time last year.

Furthermore, on June 21, the government rice reserve stood at 173,000 tonnes – a whopping 445,000 tonnes less than the 618,000-tonne reserve on the same day last year.

This situation did not arise overnight, but has been happening over the last six months, said market insiders, who blamed the government for overlooking the rapidly depleting government stock and not initiating the import of rice sooner.

“The government is too late
. It should have approached the international market for importing rice much sooner than it did when it noticed the depleting reserve,” said Quazi Shahabuddin, agricultural economist and former director general of Bangladesh Institute of Development Studies (BIDS).

However, on Wednesday, Prime Minister Sheikh Minister said at parliament that the country was currently not facing a crisis of its staple food.

She said as of June 28, the government reserve stood at 188,000 tonnes of rice, whereas the government-approved rice mills had around 5.4 million tonnes in stock and the retail-wholesale markets had a further 5 million tonnes.

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According to the Ministry of Agriculture, Bangladesh lost around two million tonnes of paddy during the boro season in April-May – the highest yielding season of paddy in a year – due to the flash flood in Haor basin and a blast disease epidemic in different regions Syed Zakir Hossain

Where did the paddy go?
According to the Ministry of Agriculture, Bangladesh lost around two million tonnes of paddy during the boro season in April-May – the highest yielding season of paddy in a year – due to the flash flood in Haor basin and a blast disease epidemic in different regions.

Ministry data shows the boro yield last year was 19 million tonnes. Taking that into account, right now the country should have roughly around 17 million tonnes of paddy.

Like every year, the government has been procuring boro rice and paddy for its own reserve since May 2, with the target of procuring 800,000 tonnes of rice and 700,000 tonnes of paddy by August 1, mostly to run its social safety net programme and emergency disaster relief.

But as of now, the government has managed to procure only 49,159 tonnes of rice – a measly amount compared to last year’s procurement of around 1 million tonnes.

Owners of rice mills, from whom the government is procuring the rice this year, claim that there is not enough paddy in the local market, which is why they are unable to supply the rice to the government.

“This year, we do not have enough stock to run our business for long,” said Nirod Boron Saha, president of Naogaon Rice Wholesalers’ Association.

Asked where all the paddy has gone just two months after harvest, Nirod said: “Some unscrupulous traders and farmers may have hoarded the paddy as the price was good during the harvest period.”

Millers irked by govt procurement rate
Another reason why the rice mill owners have backtracked from supplying rice to the government reserve is the procurement rate set by the government, said Nirod.

For this boro season, the government has fixed the procurement price as Tk24 per kg of paddy and Tk34 per kg of rice.

These rates contradict with the “paddy-to-rice conversion” method and will cause losses to the millers, he added.

“A maund (around 37.32kg) of rice is produced from around a maund and a half of paddy. If the price of paddy is Tk24 per kg, naturally the price of rice will be Tk36,” he explained. “If the government rates are to be followed, millers will have to count a Tk2 loss per kg of rice that they supply to the government reserve.”

Because of these “ridiculous” rates, the government would not get rice from the millers this season, Nirod told the Dhaka Tribune.

Import is the solution
To overcome the current situation, the government has already initiated import of rice from different countries, including Vietnam and India.

An agreement to this end has been signed with Vietnam, while the authorities concerned are looking into the Indian market.

In addition, the government has cut down the import duty on rice to 10% from 28% so the private sector can immediately start importing rice.

However, this year rice price is higher in the international market as well.

A tonne of rice is priced at around $410-450 in India, Vietnam, Pakistan and Thailand, which means the price of imported rice in the local market would be around Tk36-42 per kg, according to the Ministry of Food.

Market insiders believe the upward trend of rice price will continue, or at least the current situation will remain as it is, if the government fails to control the market by importing enough amount of rice.

Agricultural economist Quazi Shahabuddin said importing rice is the only option for the government to tackle the situation at the moment.

He advised the government to reduce the import duty down to zero so private sector importers could make some profit, seeing as rice prices are high in the global market as well.

Nirod Boron Saha agreed. “The government should also increase the number of beneficiaries in and the amount of rice allotted to its social safety net programme to reduce the demand in the local market,” he added.
http://www.dhakatribune.com/bangladesh/2017/07/05/the-crisis-that-could-have-been-avoided/
 
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:58 PM, August 13, 2017 / LAST MODIFIED: 10:04 PM, August 13, 2017
Govt imports food to meet possible crisis: PM
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Bangladesh Prime Minister Sheikh Hasina. File photo
BSS, Dhaka

Prime Minister Sheikh Hasina today said the government decided to procure food grains from abroad as a precautionary measure to face possible shortage amid speculations of severe flooding in the coming weeks.

"Flood waters by now devastated vast tracks land with standing crops which may take serious turn in the coming days . . . there is a possibility that deluge could grasp more areas in the coming days," she said while addressing the first meeting of the National Nutrition Council (NNC) at her Tejgaon office in Dhaka.

The premier added: "The government is importing food grains to cope with any adverse situation."

Sheikh Hasina laid emphasis on ensuring adequate nutrition for every people alongside ensuring their access to food saying "access to adequate nutrition is a basic right of the people".

The prime minister said Bangladesh constitution stipulated that one of the State's primary duties was to raise people's nutrition level and improve public health status while her government ensured food security for every people and "now it's important to ensure their access to nutrition".
http://www.thedailystar.net/country...sis-prime-minister-sheikh-hasina-says-1448071

Finally, the P.M admits that there is indeed,a Food Crisis.

09:35 PM, August 11, 2017 / LAST MODIFIED: 10:02 PM, August 11, 2017
First batch of Indian rice arrives at Mongla
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The first consignment of rice imported from India by the Bangladesh government arrives at the Mongla Port on August 9, 2017. Star file phot
Star Online Report

The first consignment of rice imported from India by the Bangladesh government in an attempt to stabilise the market of the prime staple has arrived at the Mongla.

The ship, carrying 4700 metric tons of rice, anchored at the Harbaiya outer anchorage in the port on August 9, our Bagerhat correspondent reports quoting authorities.

“The quality of rice is satisfactory. Unloading will begin tonight,” said assistant controller of Department of Food at Mongla Jahirul Islam Jahangir.

After unloading, the rice supply will be sent to south-western district in lighterage vessels, he said.

A total of 50,000 tonnes of rice will come through Chittagong and Mongla ports, he said, adding that the government already received 4,700 tonnes of rice out of 50,000 ton target.

Of the total rice, 60 percent of the rice will be anchored at Chittagong port, while the remaining will reach in Mongla port, said Jahangir.

Amid the soaring prices of rice, the government, on June 20 in the current year, decided to cut the duty on the staple food import by 18% to provide incentives to export.
http://www.thedailystar.net/country/first-batch-indian-rice-arrives-mongla-1447192
 
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Logically government policies are at fault and BAL mp/businessmen are hoarding rice to artificially inflate price.

BAL scums will pay for this and other crap they have pulled over their illegal rule.

Its sheilkh mujib daughter hasina, his grandson sajeeb wazed joy price manipulating and running rate increase (electricity, gas) syndicate from "prime minister" office protected by none other than SSF.
 
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Slow down in rice imports keeps prices surging

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Food price is surging in the market as the government stock stands very low and not enough to intervene in the market by launching open market sale operation to check the continued rising trend in price.

The country suffered major production loss this year due to flash flood and is feared to face more supply shortfall as production of Aman rice is also facing major setback due the flood last month that ravaged over 20 districts. Per Kg fine rice now sells at a price more than Tk 10 compared to two to three months back. So also the price of coarse rice is at higher level by Tk 5 to 8 per Kg.

Dishonest traders are taking advantage of the situation. The food shortage now
estimated at 20 lakh tones and if Aman harvest fails suffers big loses, the loss may further multiply. This is why the government is trying to sign long tern import agreements will big rice producing countries including Myanmar bypassing the Rohingya crisis. But it proves not easier job.

Even India which is the nearest source of import has increased export price of rice
when Bangladesh needs quick arrival of supply in the market. The government has reduced import duty to 2 percent only from 30 percent at the beginning of the year. But the rise in export price left prices in the local market at high level without benefit accruing to buyers.

As rice import is hitting snag despite agreement signed with several countries, the government has decided to import two lakh tonnes of wheat from Russia under a state-to-state arrangement as part of an aggressive move to boost the country’s food stock.

It is taking place at a time the government is importing 10.5 lakh tones of rice and wheat. It signed G2G agreements but arrival is very slow.

The cabinet recently approved the move at a cost of $252 per tone, which the food ministry says is on a par with the international market price. At present, the wheat price in Ukraine is $252 per tone, in the US $251 and in Australia $256, according to the proposal.


In the last three months, the government has moved to import 10.5 lakh tones of rice and wheat at government level under state-to-state arrangement and opened tender as rice production suffered major losses in the country due to flash floods and fungal attacks.

The flash floods in six northeastern haor districts and the fungal attacks (rice blast) in 19 districts during the boro season led to the loss of 20 lakh tonnes of the staple, according to the food ministry.

In recent months, at least 20 districts in the north and elsewhere have been flooded, which will affect the aman crop. In this context, the rice price rose, and on the other hand, the government’s rice stock plunged to below two lakh tonnes.

Following recent import initiatives food stock increased to 4.37 lakh tones — rice stock 3.08 lakh tones — on August 28. The government is also working to immediately import more than two lakh tones of rice from Myanmar despite the tension centring the Rohingya influx from the neighbouring country.

Food Minister Qamrul Islam already visited Myanmar to sign a preliminary agreement for importing 10 lakh tones of rice per year, said a food ministry official.
Meanwhile, a cabinet committee meeting last month decided to import 20 lakh tonnes of food grains — 15 lakh tonnes of rice and five lakh tonnes of wheat — this fiscal year.

http://www.weeklyholiday.net/Homepage/Pages/UserHome.aspx?ID=7&date=0#Tid=14724
 
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No respite from soaring rice prices
September 09, 2017 21:32:06
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The ministry of food owes the people an explanation as to why the prices of rice, their main daily consumption item, are going up despite a substantial cut in the import duty on it.

The soaring prices of the food item eased marginally for a while when large consignments of rice imported by the private traders started pouring in about a month back. But prior to the Eid-ul-Azha, the price-trend took a reverse turn and started going up. The situation is not anyway different during the post-Eid days. But the price movements are not consistent with the measures taken by the government to contain an otherwise volatile domestic rice market. The duty on rice import has been reduced to only 0.2 per cent from the previous level of 28 per cent to encourage higher import of the item by the private sector.

Though somewhat belatedly, the government itself also plunged into action as far as the import of main cereal is concerned. The food ministry that was in deep slumber until the alarm bell rang has so far despatched a number of delegations to a number of Southeast Asian countries on a mission to procure a large quantity ---1.5 million tonnes---of rice. But reportedly, only 8.0 per cent of the targeted quantity could be imported during the last three months. The situation with the domestic rice procurement has been far more disappointing. The directorate of food has failed to procure Boro rice from the local market because of gross mismatch between the market price of rice and the ones fixed by it.

Though the seasonal rice procurement drive was designed to benefit the growers at the grassroots, the real benefit of the programme until recently used to be reaped by the millers and large rice traders, not the growers. But these beneficiaries this time decided against supplying paddy and rice to the government because the prices offered were not in commensurate with the ones prevailing in the market. So, because of its own folly, the ministry of food is finding it hard to replenish its food stock, unfortunately, in a rather comfortable international food price situation. However, the global market is going through a change lately, mainly because of a large import requirement by Bangladesh. A number of rice-exporting countries have already hiked their prices taking advantage of the situation.

However, the private sector traders are importing rice, mainly coarse varieties, in large quantities from neighbouring India. The private rice millers and traders, it is estimated, have combined food stock of around 10 million tonnes. The quantity should have been enough to end market volatility. But the problem, as the current situation suggests, lies with the government food stock. A precariously low food stock with the government silos does encourage the private rice traders to become unduly profit-hungry. Moreover, a free-for-all situation is apparently prevailing in the domestic rice market. The gap between prices of rice at the wholesale and retail markets is unusually large. This needs to be looked into by the relevant government agencies. Domestic food production stands to suffer from two consecutive floods this year. The ongoing rice-price trend, unless reversed, could cause enough of sufferings to the poor and low-income people.
http://thefinancialexpress.com.bd/editorial/no-respite-from-soaring-rice-prices-1505133820
 
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জাহাজভর্তি পচা চাল নিয়ে তোলপাড়
Hue & Cry over Shiploads of Rotten Rice

অনলাইন

চট্টগ্রাম প্রতিনিধি | ২১ সেপ্টেম্বর ২০১৭, বৃহস্পতিবার, ৪:৩৯ | সর্বশেষ আপডেট: ৪:৪১

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সকার নেয়নি। তাই বেসরকারিভাবে হলেও চাল বিক্রি করে যাবেন বিদেশি দুটি জাহাজের সংশ্লিষ্টরা। আর এ নিয়ে দেন-দরবার করতে রগিয়ে গত দুদিন আগে ফাঁস হয়ে যায় চালের গোমর। তা হচ্ছে চালগুলো পচা। খাওয়ার অনুপযোগী। ব্যবসায়ীরা এ কথা বললেও খাদ্য বিভাগ বলছে, চাল অত্যন্ত নিম্মমানের। তাই খাদ্য বিভাগ চালগুলো ফিরিয়ে নিতেও বলেছে থাইল্যান্ডের এ জাহাজ দুটিকে। কিন্তু, জাহাজ সংশ্লিষ্ট ব্যক্তিরা চাল ফেরত না নিয়ে চালগুলো বেসরকারিভাবে হলেও বিক্রি করার চেষ্টা শুরু করেন। গত মঙ্গলবার থেকে তারা যোগাযোগ করেন চট্টগ্রামসহ দেশের বেশ কয়েকটি চাল ব্যবসায়ী প্রতিষ্ঠানের সঙ্গে। এরপর থেকে পঁচা চাল নিয়ে তোলপাড় শুরু হয় চট্টগ্রামজুড়ে।

নাম প্রকাশ না করার শর্তে চট্টগ্রামের এক ব্যবসায়ী বলেন, সরকারিভাবে আমদানি করা চাল বেসরকারিভাবে বিক্রির চেষ্টা কেন? এখানেই খটকা। চট্টগ্রাম বন্দর ও খাদ্য বিভাগের সঙ্গে যোগাযোগ করে জানলাম জাহাজ দুটির চাল পচা। ফলে এ নিয়ে যেন কোনো বুমেরাং না হয় তাই গত ২০ দিন ধরে সরকারের খাদ্য বিভাগ ও চট্টগ্রাম বন্দর কর্তৃপক্ষ অনেকটা গোপনে করে গেছেন পরীক্ষা-নিরীক্ষা ও ফেরত আদেশসহ সব প্রক্রিয়া। এমন মন্তব্য ব্যবসায়ীদের।

এ ব্যাপারে যোগাযোগ করা হলে খাদ্য বিভাগ চট্টগ্রামের চলাচল ও সংরক্ষণ নিয়ন্ত্রক জহিরুল ইসলাম বলেন, থাইল্যান্ড থেকে আমদানি করা প্রায় ৩২ হাজার ১৪০ টন চাল নিয়ে দুটি জাহাজ চট্টগ্রাম বন্দরে আসে। এরমধ্যে এমভি থাই বিন বে নামের একটি জাহাজ ১২ হাজার ২৯০ টন চাল নিয়ে ৩১শে আগষ্ট এবং এমভি ডায়মন্ড-এ নামের অপর চালবাহী জাহাজ আসে ১লা সেপ্টেম্বর। এতে ১৯ হাজার ৮৫০ টন চাল রয়েছে।

কিন্তু চালগুলো খালাসের আগে পরীক্ষা-নিরীক্ষা করে দেখা গেছে, দরপত্রের শর্তের চেয়ে বেশি পরিমান মরা, বিনষ্ট ও বিবর্ণ দানা রয়েছে। ফলে চালগুলো গ্রহণ করা হয়নি। সেগুলো ফেরত নিতে বলা হয়। তিনি বলেন, জাহাজে থাকা চালের মধ্যে মরা, বিনষ্ট ও বিবর্ণ দানার পরিমাণ ১৩ দশমিক ৪৫ শতাংশ। অন্য জাহাজের চালের দানায় এর পরিমাণ পাওয়া যায় ১৭ শতাংশ। সরকারের আমদানির দরপত্র চুক্তির শর্ত অনুযায়ী, মরা, বিনষ্ট ও বিবর্ণ দানার গ্রহণযোগ্য সীমা ৩ শতাংশ।

সরবরাহকারি প্রতিষ্ঠানটির সঙ্গে খাদ্য বিভাগের চুক্তির শর্ত অনুযায়ী, একটি জাহাজে যত চাল আনা হবে, তার মধ্যে নমুনায় যদি ৪ শতাংশ পর্যন্ত মরা, বিনষ্ট ও বিবর্ণ দানা পাওয়া যায়, তবে জরিমানা আদায় করে তা গ্রহণ করতে পারবে খাদ্য বিভাগ। কিন্তু দুটি জাহাজে আনা চাল জরিমানা করেও গ্রহণ করার সুযোগ নেই বলে জানান তিনি। খাদ্য বিভাগের এ কর্মকর্তা জানান, আন্তর্জাতিক দরপত্রের মাধ্যমে সিঙ্গাপুরভিত্তিক ঠিকাদারি প্রতিষ্ঠান ওলাম ইন্টারন্যাশনালের কাছ থেকে মোট ৫০ হাজার টন চাল কেনার চুক্তি হয়। এর মধ্যে প্রথম দুটি চালানেই শর্ত লঙ্ঘন করে নিয়ে আসা হয়েছে পঁচা চাল।

http://www.mzamin.com/article.php?mzamin=84009
 
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Govt indecision blamed for rice price hike
Ibrahim Hossain Ovi
Published at 01:08 AM September 28, 2017
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Photo:AFP
'We cannot put aside that there was no hoarding by the traders as they take the chance of uncertainty'
The government indecision over procurement and tax cut in import has contributed to the hike in rice price recently, according to the World Bank.

The World Bank lead economist, Zahid Hussain, came up with the remark while addressing a group of journalists at his office in Dhaka on Wednesday.

He was delivering speech on The Bangladesh Development Update: Towards more, better and inclusive jobs.

“About the recent hike in rice price, there are a series of generalised comments. Some lay blame on the government mismanagement, while others on trader’s syndicate that create artificial shortage.”

Flood in haor area and later in other parts of the country had been the key reason for price hike as it hit rice production.

The government indecision over procurement to meet the shortage and cut in import tax played a crucial role, observed the economist.

Flood in haor areas is said to have lowered rice production by about 10,00,000 tons, but in recent estimate, it was about 20,00,000 tons.

Instead of cutting import duty at a time, the government did that in phases. As a result, a good number of rice-laden trucks were deliberately waiting on the border to enjoy more duty cut which pushed the rice price up, said Zahid.

“We cannot put aside that there was no hoarding by the traders as they take the chance of uncertainty,” he added.

Meanwhile, rumor on import ban by the Indian government cast an adverse impact on the market though it was a fake news, said the noted economist.

In September, prices of per kilogramme of rice in different categories went up by Tk8 to Tk10. Following the price hike, the government has cut import duty by 26%. it also allowed import of rice in poly bag instead of jute sack.
http://www.dhakatribune.com/business/2017/09/28/govt-indecision-blamed-rice-price-hike/
 
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