Editorial
Rice price record high
Let's do something about it
Prices of all varieties of rice have soared taking up a huge portion of consumer budget with its diminishing purchasing power, as it is. Of particular ordeal is the price of coarse rice consumed by lower income groups forming a vast majority of the people. The low quality rice is selling at Tk 32 per kg and likely to rise to Tk 35 per kg.
The reports have it that Indian traders have failed to get approval from their customs for exporting several thousand tonnes of rice with LCs opened for US dollar 425 per tonne. The Indian customs are only releasing rice at Benapole with a price tag of US dollar 500 per tonne, the increase in price having been notified by Indian commerce ministry lately. At that rate, the cost price for Bangladeshi traders comes to above Tk 35 per kg.
The Indian High Commission in Dhaka has since dubbed the media reports here regarding India's raising of the minimum export price of rice as 'misleading and inaccurate'. The changes notified in the minimum export price taking into account availability and prices of rice in the Indian domestic market are not 'country-specific', the clarification pointed out. Which is not saying much as far as Bangladesh is concerned. But the redeeming thing is the statement that 'the restriction is not applicable to exports undertaken under food aid programme'. This is in keeping with the spirit of the Indian External Affairs Minister Pranab Mukherjee's announcement in Dhaka waiving the ban on export of five lakh tonnes of rice to Bangladesh, in a much-acclaimed friendly gesture.
We understand that Bangladesh and its agencies could negotiate with the State Trading Corporation of India Ltd and National Agriculture Cooperative Marketing Federation of India Ltd for procurement of rice at reasonable prices.
We expect the governments of Bangladesh and India to vigorously interact in making sure that the five lakh tonnes of rice that India has agreed to export to Bangladesh is delivered in quick time so as to help us bring down the prices in the local market.
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