al year (FY’14) hit the all-time high of 34.35 million tonnes against the domestic demand for 31.0 million tonnes. The government, however, did not import rice during the period, according to food ministry data. Rice millers across the country are facing huge losses as they had bought paddy from farmers at higher prices. On the other hand, the farmers are forced to sell their produce at lower prices than last year as the millers are reluctant to buy paddy. President of Dinajpur Rice Mills Owners’ Association Gulam Hamidur Rahman told daily sun that production cost of husked rice have soared to Tk 30 per kilogram as they purchased paddy at higher rates from the farmers. He said they had to purchase paddy at higher price as the government fixed Aman price at Tk 32 per kg. But, the importers are selling rice, imported from India, at Tk 24-26 per kilogram in the market. “The millers have been facing a sharp competition with imported rice, which might leave a terrible impact on the market stability in the future,” Hamidur said, adding that they are facing difficulties in repaying bank loans for losing the competitive edge over imported rice. The rice millers are already stuck with unsold stocks of locally grown coarse and medium rice because of cheap imported rice, he said. Hamidur said they have been demanding to impose tax on imported rice to safeguard the local rice produces. Nirod Baran Saha, president of Naogaon Rice Wholesalers Association, said market of local rice is in crisis as imported rice is selling at lower prices. Traders said prices of local rice came down due to influx of imported rice. Local coarse rice is currently selling at Tk 28 per kg from Tk 29 a kg two month ago while minicate rice is selling at Tk 41 per kg, down from Tk 42.5-43 last month. Farmers grew aman paddy on 54 lakh hectares of land last season and saw a good harvest. Paddy prices usually go up at this time of the year, but the scenario is different this time as the millers have stopped procuring paddy. Price of aman rice was Tk 720 per mond during harvest season, which now came down to Tk 640 per mound, he said. “Local millers have almost trembled down as nearly 60 percent of mills were forced to stop their production in the peak ‘rice-milling season’ amid the rise in import,” said Nirod Baran Saha. He said medium-scale husking rice millers are in the verge of collapse due to the crisis. Only 4-5 auto rice mills are running among 52 mills in Naogaon while 60 percent of drum broiler mills have stopped their operation recently. “Most of the mills depend on bank loans and they will turn loan defaulters if the trend continues,” he said.
Tuesday, March 24, 2015
Rise in rice import puts local farmers, millers in crisis A rise in rice import is posing a threat to the local paddy market, forcing the rice millers and farmers:Daily Sun
al year (FY’14) hit the all-time high of 34.35 million tonnes against the domestic demand for 31.0 million tonnes. The government, however, did not import rice during the period, according to food ministry data. Rice millers across the country are facing huge losses as they had bought paddy from farmers at higher prices. On the other hand, the farmers are forced to sell their produce at lower prices than last year as the millers are reluctant to buy paddy. President of Dinajpur Rice Mills Owners’ Association Gulam Hamidur Rahman told daily sun that production cost of husked rice have soared to Tk 30 per kilogram as they purchased paddy at higher rates from the farmers. He said they had to purchase paddy at higher price as the government fixed Aman price at Tk 32 per kg. But, the importers are selling rice, imported from India, at Tk 24-26 per kilogram in the market. “The millers have been facing a sharp competition with imported rice, which might leave a terrible impact on the market stability in the future,” Hamidur said, adding that they are facing difficulties in repaying bank loans for losing the competitive edge over imported rice. The rice millers are already stuck with unsold stocks of locally grown coarse and medium rice because of cheap imported rice, he said. Hamidur said they have been demanding to impose tax on imported rice to safeguard the local rice produces. Nirod Baran Saha, president of Naogaon Rice Wholesalers Association, said market of local rice is in crisis as imported rice is selling at lower prices. Traders said prices of local rice came down due to influx of imported rice. Local coarse rice is currently selling at Tk 28 per kg from Tk 29 a kg two month ago while minicate rice is selling at Tk 41 per kg, down from Tk 42.5-43 last month. Farmers grew aman paddy on 54 lakh hectares of land last season and saw a good harvest. Paddy prices usually go up at this time of the year, but the scenario is different this time as the millers have stopped procuring paddy. Price of aman rice was Tk 720 per mond during harvest season, which now came down to Tk 640 per mound, he said. “Local millers have almost trembled down as nearly 60 percent of mills were forced to stop their production in the peak ‘rice-milling season’ amid the rise in import,” said Nirod Baran Saha. He said medium-scale husking rice millers are in the verge of collapse due to the crisis. Only 4-5 auto rice mills are running among 52 mills in Naogaon while 60 percent of drum broiler mills have stopped their operation recently. “Most of the mills depend on bank loans and they will turn loan defaulters if the trend continues,” he said.
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