Bangladesh lowers import duties on rice

Bangladesh's National Board of Revenue (NBR) has agreed to cut the tax on imported rice from 25% to 15%, according to the Vietnam Industry and Trade Center (VITIC). The new tariff level is in force until the end of October.

The information is what caused a 10% rise in the price of non-basmati rice, India's premium rice, in only three days (August 15-17). As a result, the price increased to 35 rupees from 32 rupees.

The decision was taken in response to a request by Bangladesh's Food Ministry. The government is encouraging companies to import rice in order to maintain local rice prices at a level that will have a minimal effect on people's standard of living.

Last December, Bangladesh lowered the tax on imported rice from 62.5 percent to 25%, aiming to avert a rise in rice prices.

According to the Bangladesh Trade Corporation (TCB), the price of raw rice in July rose by 4% on a monthly basis, to an average of 44 takas per kg, 38% more than the price of rice imported from India.

Prices continued to rise in August, with mid-August raw rice in Dhaka costing 46-50 takas per kg, up from 44 takas a month earlier; medium milling rice costs 50-60 takas per kg, while improved rice costs 65-78 takas per kg.

Bangladesh produced 38.6 million tons of rice in the 2020-2021 crop year, an increase of more than 6% over the previous harvest. Rice consumption is about 34 million tons per year.

Bangladesh is Vietnam's sixth-largest rice export market. Vietnam sold almost 53,000 tons of rice to Bangladesh in the first seven months of this year, worth USD 32 million, a rise of 9,323 % in volume and 10,972 % in value.