Import pushes price of Aman rice down

Growers suffering loss

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Anisul Islam Noor :
The sale price of one mound of Aman paddy in the rural areas is Tk 520 to 560, which is 75 percent of the production cost.
According to the government assessment, production cost of per mound Aman Paddy is Tk740 this year. It means that the farmers are sustaining losses of Tk 180 to Tk 220 per mound.
The Department of Agriculture Marketing (DAM)’s observation is that the Aman Paddy sells at Tk Tk520 to 540 per mound in different northern districts, including Bogra, Rajshahi, Rangpur and Natore.
About the reasons of losses, observers blame the import of rice from abroad. The rice price in the market is heading downward.
The harvest of the second biggest crop of the country has already begun. The rural households are busy processing the new paddy. But there are not enough realistic and effective initiatives from the government to ensure fair prices of the produce. They think that the government’s rice procurement drive will not leave any effect on the fair price for Aman farmers.
An official at the Department of Agriculture Extension said that the government fixed the
Aman production target at one crore 30 lakh 97 thousand tonnes on 52 lakh 60 thousand hectares of land..
He also said that the farmers did not get fair prices for Boro paddy. Experts said, the government should impose additional duty to halt importing rice or ban rice import for certain period.
Farmer Abdus Sabur from Natore said, “This time, we think that the situation is not favourable. The price of rice is in the market is below the production cost. In our area, this is the only major crop. There will be no profit if the paddy price is not Tk 800- 850 at least.”
According to the food ministry, the rice price at the retail level fell by 17 percent in the last one year from October 2014 and at the wholesale level the prices fell by 19 percent. An official at the agriculture ministry said that the price could not rise because of the unbridled import of rice.
According to the food ministry, in the last fiscal year 2014-15, about 52 lakh 74 thousand 360 tonnes of rice were imported. Till November 9 of the current fiscal year 2015-16, already 15 lakh 200 thousand tonnes of rice had been imported. On May 10, the government imposed 10 percent customs duty on import of rice. The food minister said on Thursday tat the customs duty on the import of rice would be increased in a few days to ensure fair prices of the produce for the farmers.
“This time the Aman yield is good. But the farmers are very concerned looking at their fields. They think that they may not get the fair price. I think the government should have a specific policy in this connection. The future of agriculture in the country depends on the future of the farmers. The government should fix the price of paddy. Nobody will be able to buy the rice below that price. The government also will buy the rice with that rate. Only then the farmers will be benefited.” said Farida Akhter, Executive Director, Policy Research on Development Alternatives
“In our country whereas the farmers will be happy over the good yield and make profit, actually they are the losers on many occasions. The farmers cannot recoup the production costs. If the government claims to be self-sufficient in food production, then they must ensure fair prices to the farmers. If the fair prices are not ensured for the farmers, the scope of increasing the food production will be no more there in future. The farmers may quit the farming,” she said.
The agriculture ministry said the production cost of Boro paddy was Tk 20 per kg and rice Tk 27.50 per kg. Based on that, the production cost of paddy was Tk 800 per mound. But the farmers in Sherpur, Dinajpur, Gaibandha, Jhenaidah, Bhola, Jessore and other districts were selling their paddy at half of the production cost.
According to the agriculture ministry, the production cost of Aman paddy will now be Tk 18.50 per kg and rice Tk 28.50 per kg.
Though last year the production cost was Tk 0.50 less than this year, the government procured the Aman rice at Tk 32 per kg. This year the procurement price had been fixed at Tk 31 per kg, less by Tk 1.0. The government will procure two lakh tonnes of Aman rice this year.
According to the market report of the agriculture ministry, the retail price of coarse rice was Tk 29-32 per kg.
Agriculture Ministry Additional Secretary and seed wing Director General Anwar Faruk told the reporter, “The fair price cannot be ensured for the farmers. The market is now not in favour of them. There are stocks of Boro paddy. The price of rice is also low in the markets. If the paddy is directly bought from the farmers, they can be benefited to some extent.”
The government procures Aman rice every year from the domestic market to keep the market stable and ensure fair prices for the farmers. But the government buys rice from the mills instead of from the farmers. In that case, the mill owners and the middlemen are benefited.
“The government should have the direct relation with the farmers and buy it directly from the farmers.” She said.
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