Recommendation to waive import duty on rice

In response to a sharp fall in rice production caused by recent floods, the Bangladesh Trade and Tariff Commission has recommended removing the current import duty on rice to stabilise supply and prices in the local market.

According to the commission's report, a complete waiver on the import duty would help curb rising rice prices and encourage imports from international markets, such as Thailand and India, where prices are Tk 66 and Tk 54 per kg, respectively, without duty.

The report says that the potential negative impact of the floods on the upcoming production season.

The Department of Agricultural Extension estimates that two flood waves disrupted the production of 839,000 tonnes of rice from August 16 to October 15.

Despite the government’s recent reduction of import duties from 62.5% to 25%, importers remain discouraged due to high tariffs, limiting the influx of rice and affecting consumer purchasing power.