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Business Administration / Imports soar despite higher yields
« on: March 20, 2014, 01:08:25 PM »
Rice imports are surging despite higher production in the past three harvesting seasons of aman, aus and boro. Imports rose 19 times to 3.71 lakh tonnes between July 2013 and March 6 this year, from 18,900 tonnes in the same period a year ago, according to the food ministry.
Government officials said imports rose as rice prices were low on the international market due to higher production and exports particularly from India.
Currently, the export price of Indian parboiled rice is at $410 each tonne on the international market, whereas the wholesale price of the same quality rice remains over $430 a tonne in Bangladesh, according to food ministry data.
"The price difference between the domestic and international markets encouraged imports by the private sector," an official of the food ministry said, asking not to be named.
India released a higher amount of rice from its stock which helped contain the prices on the international market, he said.
"This has also helped Bangladesh rein in its prices," he said.
Last year, boro output rose 1 percent to 187.7 lakh tonnes compared to the previous year. Aus production went up 8 percent to 23.2 lakh tonnes in the last harvesting season from 21.58 lakh tonnes in the previous season.
Production of aman, harvested in November-December last year, increased 1 percent to 130.2 lakh tonnes from 128.9 lakh tonnes in the previous year, according to preliminary estimates by Bangladesh Bureau of Statistics.
The food ministry official said the quantity of imports is insignificant compared to the total domestic production.
"Neither there is a production shortfall nor a glut," he said.
However, importers blamed the rise in imports on the lower-than-expected yields of aman, depreciation of the India rupee against the dollar and a supply disruption due to political unrest in the run-up to the January 5 national election.
Sarwar Alam Kazol, a rice importer in Naogaon, said many traders imported rice to cash in on the supply disruption during the political instability.
"Imports rose as there was a demand in the local market," said Nurul Islam, a rice miller and importer in Naogaon.
"Many farmers increased aromatic rice farming area in the last aman season. It has led to a fall in production of rice used for parboiling," he said.
The Department of Agricultural Extension has set a target of rice production at 189.2 lakh tonnes for the current boro season.
Government officials said imports rose as rice prices were low on the international market due to higher production and exports particularly from India.
Currently, the export price of Indian parboiled rice is at $410 each tonne on the international market, whereas the wholesale price of the same quality rice remains over $430 a tonne in Bangladesh, according to food ministry data.
"The price difference between the domestic and international markets encouraged imports by the private sector," an official of the food ministry said, asking not to be named.
India released a higher amount of rice from its stock which helped contain the prices on the international market, he said.
"This has also helped Bangladesh rein in its prices," he said.
Last year, boro output rose 1 percent to 187.7 lakh tonnes compared to the previous year. Aus production went up 8 percent to 23.2 lakh tonnes in the last harvesting season from 21.58 lakh tonnes in the previous season.
Production of aman, harvested in November-December last year, increased 1 percent to 130.2 lakh tonnes from 128.9 lakh tonnes in the previous year, according to preliminary estimates by Bangladesh Bureau of Statistics.
The food ministry official said the quantity of imports is insignificant compared to the total domestic production.
"Neither there is a production shortfall nor a glut," he said.
However, importers blamed the rise in imports on the lower-than-expected yields of aman, depreciation of the India rupee against the dollar and a supply disruption due to political unrest in the run-up to the January 5 national election.
Sarwar Alam Kazol, a rice importer in Naogaon, said many traders imported rice to cash in on the supply disruption during the political instability.
"Imports rose as there was a demand in the local market," said Nurul Islam, a rice miller and importer in Naogaon.
"Many farmers increased aromatic rice farming area in the last aman season. It has led to a fall in production of rice used for parboiling," he said.
The Department of Agricultural Extension has set a target of rice production at 189.2 lakh tonnes for the current boro season.