Daily rice import costing Tk 30 crore

Dhaka, Jan 18 (bdprem.com)—Bangladesh has imported a vast quantity of rice since the start of January, with an average of over 12,000 metric tonnes arriving every day at a cost of more than Tk 30 crore. This is putting strains on the central bank's foreign currency reserve, which has plummeted to $5.16 billion from $5.55 billion, according to the Bangladesh Bank. Your Ad Here According to the latest data from the central bank's foreign currency policy research cell, in the first six months (July-December) of the current fiscal year (2007-08) a total of 998,000 (9.98 lakh) tonnes of rice was imported, compared to 173,000 (1.73 lakh) tonnes in the corresponding period of the previous fiscal year. In the first 10 days of January this year, 121,000 (1.21 lakh) metric tonnes rice was imported, compared to just 10,000 metric tonnes during Jan 1-10 in 2007. According to the central bank these 10 days' worth of rice cost $42.7 million (Tk 292 crore) to import. Rice traders and experts say the trend of rising rice import will continue till the boro crop is harvested. Concerned groups are therefore urging the government to take measures to reap a bumper boro harvest. Alongside government imports, the import of rice in the private sector also increased after the two floods and Cyclone Sidr devastated crops last year. However, the import of rice has escalated in recent days. Haji Golam Maula, a rice importer and general secretary of Moulvibazar Traders Association—one of the country's biggest wholesale markets—told bdnews24.com: "The country is now experiencing a crisis of rice due to devastating effects of the natural disasters." "This is why rice import is higher than any other time." The increase in import of rice will continue till the boro crop is harvested, Golam Maula said. According to the latest available figures of the ministry of food, at the end of October the stock of food staples (rice and wheat) in government warehouses was 729,000 (7.29 lakh) tonnes. In the corresponding period last year the stock was 871,000 tonnes. Meanwhile, Bangladesh Bank figures show the reserve of foreign currency crossed $5.55 billion (US$555 crore) in the first week of the current month. The reserve fell after paying an import bill of $460 million (US$46 crore) on Jan 10 and stood at $5.16 billion Thursday. Bangladesh Bank deputy governor Nazrul Huda said: "Food import increased as the production of aman rice was hampered due to floods and Sidr." "We will have to concentrate on increasing boro production to reduce import dependence," he added. He said the government should make a coordinated effort to effect this this.