Rice traders refuse to unload cargo for high duty at Hili

A wholesale food shop in Hili

Dinajpur, Aug 13 – Although rice imports through Hili land port have begun, importers have been refraining from clearing their consignments from customs, fearing heavy financial losses due to high import duty.

Despite receiving the government's permission to import rice, importers at the Dinajpur-based land port say they are unwilling to proceed because customs duties and taxes remain high.

Many traders have opened LCs in anticipation of a duty reduction, but have paused imports from India.

However, rice was imported through 15 Indian trucks from Tuesday till Wednesday noon but the consignments remain uncleared at customs due to the high duty.

Talking to importers at the port they said that the current rate imposes about Tk 31 per kg in customs taxes.

The price of rice in India ranges between 520 to 530 dollar per tonne, which equates to Tk 63–65 per kg in Bangladeshi currency.

Including duties and other costs, total import costs rise to Tk 95–96 per kg, making imports economically unviable under the current scenario.

They also urged the government to reinstate the earlier 2% duty rate to facilitate imports.

Sources said, the government decided to allow private import of 5 lakh metric tonnes of parboiled and Atap rice to stabilise the domestic supply and consumer prices.

It invited applications between July 23 and August 7 from interested importers.

On August 10, import permission was granted to 242 importers in the first phase.

When speaking, Lalit Keshra, owner of importing company M/s Sayram International, said “Importing rice with the current 62.5% duty is not feasible. We’ve opened LCs, but unless the government withdraws or reduces the duty to the previous 2%, importing is not possible. At the current rates, the duty alone will cost Tk 35 per kg, while rice itself will cost Tk 68–70.”

“In total, the cost exceeds Tk 100 per kg. Importers want the government to lower the duty urgently so we can import rice. Otherwise, we can’t afford the losses. Besides, the market price of rice is still relatively stable,” he added.

Abul Bashar, owner of M/s Mifa International, another importer at the port, said he received permission to import 1,000 metric tonnes of rice. “But we won’t proceed with LCs unless the government reduces the duty. No one else will either,” he said.

He explained that with a 62.5% duty, customs charges exceed Tk 31 per kg. With Indian prices at USD 520–550 per tonne, the landed cost comes to Tk 63–65 per kg.

“So the total cost per kg stands at Tk 96. Meanwhile, in local markets, good quality rice is being sold at Tk 70–80,” he said.

Meanwhile, on Tuesday and Wednesday, 15 trucks of rice consignments arrived from India.

Mithun Saha, an importer from Naogaon, imported 125 metric tonnes and 944 kg of rice via three trucks.

“I imported this shipment expecting the government to cut duties. But since that hasn’t happened yet, releasing it from customs would incur major losses,” he said.

Importers are in talks with the authorities, hoping for a revision.

“Without a duty cut, imported rice won’t be cheaper in the local market. It will defeat the purpose of the government’s decision and may further increase prices,” he warned.

Yusuf Ali, sub-assistant at the Plant Quarantine Centre at Hili Port, said that as of Wednesday noon, 32 importers had obtained import permits (IPs) from the Department of Agricultural Extension to bring in 45,000 metric tonnes of rice from India.

More permits are expected to be issued gradually. Rice imports had been suspended since April 16.

Meanwhile, Md. Nazmul Hossain, assistant revenue officer (ARO) at Hili Land Customs Station, said “As of 2:30 pm on Wednesday, we have not received any order from the National Board of Revenue (NBR) regarding a reduction in rice import duty. There is also no updated information about duty changes on the customs server. Therefore, the existing 62.5% duty remains in place. Importers wishing to release their rice shipments must pay this duty.” - UNB