Govt opts for OMS to cut rice prices

Food minister sees political motive, lambasts unscrupulous traders, mill owners for price hike

Apparently unable to control the hike in rice price despite taking various measures including import of the food grain, the government has now decided to introduce OMS (open market sale) from Sunday and a food-friendly programme from September 20 to bring the prices within the people’s reach. Claiming political motive behind the rice price hike, Food Minister Qamrul Islam yesterday said that certain quarters are manipulating prices of rice, even though the total stock held by millers, wholesalers and farmers is estimated to be around one crore tonnes.

Qamrul Islam said this while talking to reporters during a press briefing at the Secretariat yesterday. The minister wondered how rice is being sold at Tk. 70–80 per kg even when there are huge stocks in warehouses. In mid-August, the Bangladesh government reduced the import duty on rice from 10 percent to 2 percent to replenish the stock of the staple food item and keep its prices stable. Earlier in June, the government also revised the duty on rice import. It was cut down to 10 percent from 25 percent. And another 3 percent regulatory duty required to import rice was also withdrawn during the period.

“There is nothing but trickery and politics behind the recent increase in rice prices. Bangladesh has produced 1.92 crore tonnes of rice despite a loss of 20 lakh tonnes of paddy due to floods, flash floods and blast diseases,” Qamrul also said.

Blaming a section of traders and mill owners for the hike in rice prices, the minister said: “This quarter is involved in a conspiracy. At least 85,000 tonnes of food grain is consumed by the people daily. There are over one crore tonnes of rice still in Bangladesh. So, how can this situation arise?”

Warning rice millers, importers and wholesalers against artificially jacking up prices, the minister said there is still time to stop playing politics with grain prices. “I call upon merchants and mill owners to act morally. We'll not tolerate your cartel, your racket, your attempts to play politics and the artificial shortage to inflate the prices of rice. This

is your final chance,” he warned. Law enforcement agencies have already begun operations against rice hoarders, and a monitoring team has been formed to expeditiously identify the culprits, the minister said in reply to a query.

This year, the government has set a target of producing 1.91 crore tonnes of Boro paddy, but 10 lakh tonnes of paddy were damaged in the recent floods in the ‘haor’ areas of the country, creating an unusual situation in the rice market, noted Qamrul Islam.

“We had a target of procuring 12.5 lakh tonnes of Boro rice this season, but could not do so because of the high prices. We’ve been able to collect only 2.5 lakh tonnes. Now, the government has decided to increase the buffer stock through imports,” the minister said.

The private sector has imported some 6 lakh tonnes of rice from India and another 17 lakh tonnes are in the pipeline. So, there would be no shortage of rice as the country has already 1.92 crore tonnes of rice, he added.

The government has already imported 2.5 lakh tonnes of rice from Vietnam, of which 1.54 lakh tonnes have been unloaded, the minister said, adding that the process of importing 2.5 lakh tonnes rice from Cambodia is also under way. “A Myanmar team will arrive in Dhaka on Sunday to negotiate the rice price. We expect to import two lakh tonnes of rice from Myanmar,” he said. On his recent Myanmar visit, Qamrul Islam said,  “I met the Prime Minister two days before visiting Myanmar. She told me trade and diplomacy can go together.”

He also said the government would open the OMS service across the country from next Sunday with one kg of rice priced at Tk. 15 and wheat at Tk. 17. Besides, a food-friendly programme will start from September 20 and every card holder would be able to get rice at Tk. 10 per kg. Moreover, a meeting has been scheduled with importers, mill owners and wholesalers on September 19 on the rice issue, the minister added.

Govt opts for OMS to cut rice prices

Food minister sees political motive, lambasts unscrupulous traders, mill owners for price hike

Apparently unable to control the hike in rice price despite taking various measures including import of the food grain, the government has now decided to introduce OMS (open market sale) from Sunday and a food-friendly programme from September 20 to bring the prices within the peoples reach. Claiming political motive behind the rice price hike, Food Minister Qamrul Islam yesterday said that certain quarters are manipulating prices of rice, even though the total stock held by millers, wholesalers and farmers is estimated to be around one crore tonnes. Qamrul Islam said this while talking to reporters during a press briefing at the Secretariat yesterday. The minister wondered how rice is being sold at Tk. 7080 per kg even when there are huge stocks in warehouses. In mid-August, the Bangladesh government reduced the import duty on rice from 10 percent to 2 percent to replenish the stock of the staple food item and keep its prices stable. Earlier in June, the government also revised the duty on rice import. It was cut down to 10 percent from 25 percent. And another 3 percent regulatory duty required to import rice was also withdrawn during the period. There is nothing but trickery and politics behind the recent increase in rice prices. Bangladesh has produced 1.92 crore tonnes of rice despite a loss of 20 lakh tonnes of paddy due to floods, flash floods and blast diseases, Qamrul also said. Blaming a section of traders and mill owners for the hike in rice prices, the minister said: This quarter is involved in a conspiracy. At least 85,000 tonnes of food grain is consumed by the people daily. There are over one crore tonnes of rice still in Bangladesh. So, how can this situation arise? Warning rice millers, importers and wholesalers against artificially jacking up prices, the minister said there is still time to stop playing politics with grain prices. I call upon merchants and mill owners to act morally. Well not tolerate your cartel, your racket, your attempts to play politics and the artificial shortage to inflate the prices of rice. This is your final chance, he warned. Law enforcement agencies have already begun operations against rice hoarders, and a monitoring team has been formed to expeditiously identify the culprits, the minister said in reply to a query. This year, the government has set a target of producing 1.91 crore tonnes of Boro paddy, but 10 lakh tonnes of paddy were damaged in the recent floods in the haor areas of the country, creating an unusual situation in the rice market, noted Qamrul Islam. We had a target of procuring 12.5 lakh tonnes of Boro rice this season, but could not do so because of the high prices. Weve been able to collect only 2.5 lakh tonnes. Now, the government has decided to increase the buffer stock through imports, the minister said. The private sector has imported some 6 lakh tonnes of rice from India and another 17 lakh tonnes are in the pipeline. So, there would be no shortage of rice as the country has already 1.92 crore tonnes of rice, he added. The government has already imported 2.5 lakh tonnes of rice from Vietnam, of which 1.54 lakh tonnes have been unloaded, the minister said, adding that the process of importing 2.5 lakh tonnes rice from Cambodia is also under way. A Myanmar team will arrive in Dhaka on Sunday to negotiate the rice price. We expect to import two lakh tonnes of rice from Myanmar, he said. On his recent Myanmar visit, Qamrul Islam said, I met the Prime Minister two days before visiting Myanmar. She told me trade and diplomacy can go together. He also said the government would open the OMS service across the country from next Sunday with one kg of rice priced at Tk. 15 and wheat at Tk. 17. Besides, a food-friendly programme will start from September 20 and every card holder would be able to get rice at Tk. 10 per kg. Moreover, a meeting has been scheduled with importers, mill owners and wholesalers on September 19 on the rice issue, the minister added.