Traders get until September to open letters of credit (L/Cs) for importing 1.06-million tonnes of rice until September as only 25 per cent have been opened so far.
Food ministry earlier fixed August 29 as the L/C opening deadline, which has been extended following a tiny 38,000 tonnes of import so far, says an official.
He said L/Cs have so far been opened to import nearly 0.25 out of 1.06-million tonnes by 383 traders.
Food secretary Md Ismail Hossain says further cuts in import duty and time extension for L/C opening may help raise imports in the coming weeks.
Time has been extended for a month until September so all traders can open L/Cs and bring in rice within October 31, he tells the FE.
Asked, Mr Hossain says: "I've also learned from the Indian media that the neighbouring country may curb its 100-per cent broken white rice import."
"However, it won't affect our import as we usually bring in 5.0-per cent broken parboiled rice," he adds.
According to the secretary, the government will start selling rice at a subsidised rate across the country from September 01.
"More than 0.3-million tonnes of rice will be distributed per month while we have a stock of 1.9-million tonnes of rice and paddy for now," he comments.
On June 22, the customs authorities reduced duty to 25.75 per cent from 62.5 per cent to encourage imports aiming to increase supply in the domestic market.
The import duty has further been reduced to 15.25 per cent on August 28, according to the revenue board.
Value-chain expert and farm economist Prof Golam Hafeez Kennedy suggests that Bangladesh import a good quantity immediately amid a likely drought-induced Aman production fall by 30 per cent this year.
Rising diesel price in dry months has dealt a double blow to the farmers who have to go for supplementary irrigation during this rain-fed rice season.
The reduced duty will not be enough to boost import following the skyrocketing exchange rate of dollar and rising prices by Indian exporters, adds Mr Kennedy.
Consumers Association of Bangladesh secretary Humayun Kabir Bhuiyan says rice prices have hit an all-time high with most goods making new records in prices.
He pleads with the government to remove all import charges for the next two months to boost imports.
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