Bangladesh slashes rice import tariffs to 25 percent

Bangladesh has cut customs tariffs and duty on rice until October 31 this year in order to encourage imports to increase supply of the staple grain in the domestic market and cool its prices, according to a notification today (June 23, 2022).

Importers will be able to bring the grain by paying a total of 25 percent import duty, down from 62.5 percent, said the National Board of Revenue (NBR).

Importers will however have to take permission from the food ministry for each consignment.

"We have reduced the duty to facilitate imports to contain prices," said a senior official of the NBR.

The new import tariff and tax comes into effect immediately.

The move comes in the wake of a spike in the price of rice even during peak harvesting season of the largest crop Boro amid speculation of crop losses from flood and unfavourable weather. The ongoing flood also added further worries.

Prices of all sorts of grains shot up over the last one month.

Retailers sold fine rice at Tk 64-80 per kilogram yesterday, up 14 percent a month ago, according to market prices data compiled by the Trading Corporation of Bangladesh (TCB).

Prices of coarse rice, the benchmark variety, edged up 8.6 percent to Tk 48-53 per kilogram yesterday from a month earlier, according to TCB.

The NBR official said it reduced import duty in line with the recommendation from the food ministry.

In its notification, the NBR said importers will have to take prior approval from a joint secretary ranked official of the food ministry for every consignment to avail the scope to bring rice on payment of 25 percent import duty.