Bangladesh Expedites 4 Lakh Tonne Rice Import Amid Rising Prices and Flood Concerns

Government Initiates Urgent Rice Import

The Bangladesh government has initiated the urgent import of 4 lakh tonnes (400,000 metric tonnes) of rice. This move is aimed at stabilizing national food stocks and enhancing the supply available through the Open Market Sale (OMS) program. The decision comes amidst a backdrop of rising rice prices, reduced public distribution, and concerns over the impact of recent floods on the upcoming harvest.

Addressing Food Security and Market Volatility

The emergency import is a direct response to several critical factors affecting Bangladesh's food security. Rice prices across all varieties have seen increases over the past year, with coarse varieties like Swarna selling at Tk55–60 per kg, medium-grade Pajam at Tk60–70 per kg, and fine varieties such as Nazirshail at Tk72–85 per kg. The government's food reserves have also reportedly dropped by over 5 lakh tonnes since August.

Furthermore, the country faces a period before the new paddy from the Aman harvest becomes available, typically not arriving before December. Heavy rains and floods in the northern regions have exacerbated concerns about crop damage, prompting the government to take precautionary measures against potential crises. Food Secretary Md Masudul Hasan stated that maintaining a safe stock level of 13.5 lakh tonnes is a key objective.

Streamlined Procurement Process

To expedite the procurement, the government has significantly shortened the tender period for international rice imports from the usual 42 days to just 15 days. This amendment to the Public Procurement Rules was approved by the Advisers Council Committee on Economic Affairs. Tenders for 50,000 tonnes of rice from India have already been completed, with M/S Bagadiya Brothers Private Limited of Raipur securing a contract at $359.77 per tonne. Another tender for 50,000 tonnes has been floated, and processes for the remaining 3 lakh tonnes are underway. The emergency imports are anticipated to be finalized by November. The government is also exploring government-to-government (G2G) arrangements with countries like India, Vietnam, and Myanmar, and has approved importing rice from Pakistan, an uncommon source for non-aromatic rice.

Boosting Open Market Sale (OMS) and Food-Friendly Programs

The imported rice will primarily be channeled into the Open Market Sale (OMS) program, a public food distribution initiative that sells rice and wheat at subsidized prices. OMS operations have been expanded to 495 upazilas across the country. Under this program, individuals can purchase a maximum of 5kg of rice at Tk30 per kg and 5kg of unpackaged flour at Tk24 per kg weekly. In Dhaka city, a package of 5kg rice and two 2kg flour packets is available for Tk55.

In addition to OMS, the government's Food-Friendly Programme has been expanded to include 55 lakh (5.5 million) families, up from 50 lakh previously. These families will receive 30 kg of rice per month at Tk 15 per kg for six months, covering August, September, October, November, February, and March. To further support market stability, the government has removed all duties on private sector rice imports and reduced the advance income tax from 5% to 2%.