Commercial wheat imports from India have emerged as a key supply line for strife-torn Yemen in the wake of the Ukraine war, the UN deputy relief chief has said, as New Delhi informed the UN Security Council that it has exported more than 2,50,000 tonnes of wheat to the West Asian country in the last three months.

 

Assistant Secretary-General for Humanitarian Affairs and Deputy Emergency Relief Coordinator Joyce Msuya in her remarks to the UN Security Council on Monday acknowledged the wheat shipments from India were providing a 'key supply line for Yemen', particularly in the wake of the Ukraine war.

 

She made the remarks in response to the statement by Prakash Gupta, Joint Secretary (UN Political) in the Ministry of External Affairs, in the Council briefing on Yemen where he said India had been providing financial assistance and supplying food grains to countries in need in order to mitigate the supply changes in the global commodity markets and their adverse impact on food security.

 

'India has exported more than 2,50,000 tonnes of wheat to Yemen, in the last three months,' he said.

 

'We are also encouraged by recent positive exchanges between the governments of Yemen and India on facilitating wheat exports from India. Commercial wheat imports from India have emerged as a key supply line for Yemen in the wake of the Ukraine war,' Msuya said.

 

Thanking Msuya for acknowledging India's contribution of providing wheat to Yemen in her briefing to the Council, Gupta further stressed it was also important to ensure the civilian nature of the ports in the Hudaydah governorate from the food security perspective, as these ports remained the main gateway for flow of food and other essential commodities into Yemen.

 

'In this regard, India supports a more effective mandate for the UN Mission to support the Hudaydah Agreement, which will enable the Mission to undertake monitoring missions to these ports and report on their possible use for military purposes,' he added.

 

In 2014, Iran-backed Houthi rebels seized large parts of Yemen and a Saudi-led coalition intervened in support of the Yemeni government. The ensuing conflict has reportedly killed more than 150,000 people and left more than 23 million others in need of aid.

 

Msuya also noted that the Ukraine war is threatening the supply chains that bring in Yemen's food - nearly 90 per cent of which must be imported.

 

'Last year, just under half of all wheat came from Russia and Ukraine. When those supplies were cut off in February, Yemeni importers moved quickly to find other sources,' she said, adding that rising global prices, diminished access to capital and other challenges are making it much harder for importers to keep those supply chains working.

 

On the UN-mediated two-month truce between the Yemeni government and Houthi rebels announced in April, Gupta said the renewal of the nationwide truce has helped in considerably reducing hostilities at frontlines.

 

'It is the responsibility of the relevant parties to ensure that the truce is upheld and converted into a durable and long-lasting ceasefire,' he said.

 

Gupta said while the truce is an opportunity to step up humanitarian aid to Yemen's needy population, 'We are witnessing scaling down of aid operations due to critical funding gaps, whose impact is further exacerbated by global inflation in commodity prices. The low level of funding, unless reversed quickly, could lead to further cuts to humanitarian aid in Yemen, including food aid.'

 

He cautioned that this would leave millions of Yemenis, especially children, without adequate food and nutrition. He added that the full and meaningful implementation of all elements of the truce is critical for sustaining the truce.

 

'While progress has been achieved in the delivery of fuel at Hudaydah port and opening of Sana'a airport, the opening of roads in Taiz remains deadlocked. Yemenis have suffered for too long from the impact of road closures. Immediate progress in opening of arterial roads to these governorates is an urgent humanitarian imperative,' Gupta said adding that India calls on Ansarallah to negotiate in good faith to urgently reach an agreement on this issue.

 

He also expressed concern over the increasing number of attacks reportedly attributed to al-Qaeda in the Arabian Peninsula (AQAP).

 

Noting that AQAP is actively exploiting the conflict in Yemen, notwithstanding the truce and the changed military dynamics, Gupta said the group poses a significant threat to peace and stability in Yemen, across the region and beyond. He cautioned that the council must not lose focus of this threat.

 

Emphasising that the nationwide truce and other recent developments in Yemen have raised the hopes of the people of Yemen that the years-long conflict could possibly end soon, he said, 'We need to ensure that the Council does not let them down in this regard.'

 

'The only sustainable solution to the conflict is a peacefully negotiated, Yemeni-led and Yemeni-owned political settlement that prioritizes the well-being of all Yemenis and meets their legitimate aspirations,' he added.

India’s banana exports have jumped manifold in the past nine years, confirmed Union Minister Piyush Goyal in a tweet. 

 

The minister, in a tweet, said that the banana exports jumped 703 per cent in value terms from Rs 26 crore in April-May 2013 to Rs 213 crore in April-May 2022. 'Making the world go bananas,' he said. 

 

'India’s banana exports grow 8 fold in 9 years during the April-May period. The rising exports benefit our farmers immensely while enhancing India’s agricultural exports earnings,' he said.

 

India is the world’s leading producer of bananas with a share of around 25 per cent in total output. Around 70 per cent of the country’s banana production takes place in Andhra Pradesh, Gujarat, Tamil Nadu, Maharashtra, Kerala, Uttar Pradesh, Bihar and Madhya Pradesh. 

 

Exporters are assisted by the Agricultural and Processed Food Products Export and Development Authority (APEDA) under various components of its scheme, including infrastructure development, quality development and market development. It also conducts international seller meets and virtual trade fairs with importing countries to promote agricultural and processed food products. 

 

Moreover, India will export bananas and baby corn to Canada. In April, the National Plant Protection Organisations of India and Canada held negotiations, following which Canada approved the entry of fresh bananas from India with immediate effect. 'This decision of the Government of Canada would immensely benefit the Indian farmers growing these crops and would also enhance India’s export earnings,' the Ministry of Agriculture & Farmers Welfare said.

 

The ‘Jalgaon banana’ that has the Geographical Indications (GI) certification since 2016, was also exported to Dubai for the first time. 

The country's exports are likely to register a 'reasonable level' of growth in the current financial year despite the global uncertainties on the trade front, Commerce and Industry Minister Piyush Goyal has said.

 

Clearly, there are signs of a global slowdown in international trade and India is keeping a 'watchful' eye on the developments by talking to all the export promotion councils and large exporters, and engaging with the Indian missions abroad, he said.

 

In the current global situation, 'our exports will stand on the basis of price competitiveness and quality…We will calibrate the expectations of exports based on the ground reality,' the minister told PTI. When asked if figures like $450 billion or $500 billion worth of goods exports in 2022-23 look ambitious in this situation, he said the ministry has not yet come to any final figure or an export target for the current year, and it is in consultations with all the stakeholders on that.

 

'The whole world is facing severe challenges, Covid is not yet over…There is a geopolitical situation, which is not conducive, inflation worldwide is (a matter) of concern, petroleum products are still at high prices, food security concerns also are before us, and fertiliser shortages in many parts of the world are reported. 'In these challenging times, the fact that India prepared itself structurally and strengthened our basic readiness and capability to expand exports…Therefore a reasonable level of growth from last year can still be expected,' Mr. Goyal said.

 

India's merchandise exports in June rose by 16.78% year-on-year to $37.94 billion while the trade deficit ballooned to a new high of $25.63 billion on account of a steep increase in gold and crude oil imports, as per the government's preliminary data.

 

 

The export growth in June moderated from 20.55% in May and 48.34% in June 2021. In 2021-22, the country's merchandise and services exports touched $420 billion and $254 billion, respectively.

 

Commenting on the new foreign trade policy (FTP), Mr. Goyal said the ministry is collecting inputs from all quarters to release a 'robust' policy.

 

Due to the uncertainties all over the world and international trade, the ministry has extended the existing policy till September this year.

 

'In these challenging times, we are looking at further ease of doing business, reducing compliance burden, decriminalising existing laws, developing districts as export hubs, promoting our traditional areas where we are strong like textiles, pharmaceuticals, marine products, other Agri produce, handicrafts and handlooms, and leather goods, and we feel that the demand for these products will be robust in the long run,' the minister said.

 

The role of States, particularly districts, is crucial to promote India's outbound shipments.

 

The government is supporting aspirational districts and northeastern States, and also identifying the unique products of each district that can be promoted both in India and worldwide, he noted.

 

On ways to scale those products for export purposes, he said the government can hand hold those products by providing better testing facilities, brand building, and creating awareness in the world through Indian missions abroad.

 

'We are also looking at (extending) support of infrastructure, which is relevant to these products,' Mr. Goyal said.

 

On the proposal to restructure the commerce ministry, as the government is looking at taking the goods and services exports to $2 trillion by 2030, he said the ministry has been working for the past few months to design it on a more forward-looking pattern where trade promotion for goods and services becomes an integral part of its activities.

 

'The commerce ministry structure was something which must have been decided many decades ago and it continues in that fashion…For the development of the nation, international trade is very important. In this situation, we believe that the entire functioning of the commerce ministry needs to be made more contemporary,' the minister said.

 

The process has started in a small way but major change can only be done after holding more discussions with other ministries, industry and exporters, he added.

 

On valuation of the rupee vis-a-vis the U.S. dollar, he said the domestic currency today has not depreciated against the USD as much as most other currencies have.

 

'So, if you look at a relative depreciation, the rupee has actually strengthened in comparison to many currencies of the world. This is the strength of the Indian economy,' the minister said.

The Centre will soon notify the Export Inspection Council (EIC) as the nodal agency for certification and testing of wheat flour (atta) export consignments. But there could be a delay in the process of clearing the cargoes, while exporters will also have to pay for the certification.

 

The Centre on July 6 issued a notification through the Directorate-General of Foreign Trading (DGFT) stating that the Inter Ministerial Committee (IMC) will clear exports of wheat flour from July 12. The notification amended the export policy to provide for the clearance by the IMC in a move interpreted as one to curb flour exports.

 

Until July 11 (today), shipments will be cleared if exporters meet the specifications stipulated by the DGFT.

 

Payment, time

 

'Exporters may have to pay about Rs.12,000 for quality certification. The EIC will also take about 15 days to give it,' said a source with access to the Commerce Ministry.

 

When contacted, a Commerce Ministry official, who did not wish to be identified, said 'Once the notification is issued, EIC will finalize the process and charges.'

 

The source said EIC will take 15 days since it lacked adequate staff to take up such assignments. 'EIC is understaffed. Hence, the organisation cannot be blamed,' the source said.

 

Last week, a source told that EIC already does quality testing for cereals such as rice and has a sample collection process. After testing, the EIC will send its report to the IMC, which will then give its recommendation.

 

Why the curbs

 

The Centre came up with the change in export policy to curb exports of wheat flour as its shipments doubled after India banned wheat exports from May 13. As of May 13, nearly one lakh tonnes (lt) of flour had been exported along with 1.45 million tonnes (mt) of wheat. 

 

Since the ban, flour exports had topped about two lakh tonnes by June 30 forcing the Centre to come up with curbs. The Centre’s curbs are in contrast with its initial policy to promote wheat exports this fiscal.

 

However, its plans were affected after a heatwave swept wheat-growing regions affecting production this year. Initially, wheat production was estimated at a record 111.43 mt. After the heatwave, the production was lowered to 106.41 mt.

 

Apart from production being hit by the heatwave, the Centre also faced a setback in the form of lower procurement by the Food Corporation of India (FCI). The agency could buy only around 19 mt of wheat from farmers this year, far less than the 43.44 mt it procured last year. 

 

Low FCI procurement

Farmers did not sell their wheat to the FCI as they were getting prices higher than the minimum support price of Rs.2,015 a quintal fixed for this rabi season. The FCI procures wheat at MSP only and not at a higher price.

 

Wheat prices in the open market surged to over Rs.2,400 a quintal, raising the Centre’s concerns further over soaring inflation. After the ban, wheat prices dropped by over Rs.200 though they are still ruling above the MSP.

 

Currently, the weighted average modal price (the rate at which most trades take place) is Rs.2,077 a quintal.  Following India’s ban on wheat exports, prices of the cereal surged in the global market. 

 

Concerns over economic slowdown and recession have dragged wheat prices in the futures market to around $338 a tonne on the Chicago Board of Trade. According to the International Grains Council, US Soft Red Winter Wheat is offered at $327 a tonne in the spot market, while EU wheat is quoted at $357. Prices for these wheat varieties had ruled over $400 a month ago. 

 

A section of the trade is of the view that the Centre should allow value-added exports such as wheat flour, which is shipped mainly to South and West Asian countries.

Seven sectors make up the Islamic economy — Islamic finance, halal food, modest fashion, media and recreation, Muslim-friendly travel, pharmaceutical and cosmetics. Of this, halal food is the second largest sector with a US$1.17 trillion spend by Muslim consumers in 2019.

 

From 2018 to 2020, global product launches with halal claims jumped by 19%, from 16,936 products to 20,482. Sixty-three percent of these came from Asia, followed by Africa and the Middle East. Malaysia retains its top spot in the overall Global Islamic Economy Indicator (GIEI) for the eighth year. Saudi Arabia, the United Arab Emirates, Indonesia and Jordan round out the top five nations.

 

What is the definition of halal food? Halal foods must not contain pork, alcohol or intoxicants, harmful ingredients, unsanitary elements and poisons. Meat must be slaughtered according to methods prescribed under Islamic law known as Zabihah.

 

Comprising 28.7% of the world population, the Muslim consumer is a rapidly growing segment and major food players are beginning to take notice of the booming halal food sector. In 2019, Japanese seasoning company Ajinomoto invested US$85 million to build a halal production line in Malaysia, targetted to open this year. The same year, the local branch of Japanese company Sanichi Technology financed a US$300 million halal gelatin plant and industrial park in Malaysia, which will serve as the first of its kind in the region.

 

Developments in the halal food industry mark the beginning of a potentially huge market, fueled by a large, fast-growing and young Muslim population across Asia Pacific, Middle East and Africa (APMEA) who are looking for products and services aligned with their Islamic way of life.

 

Halal assurance is important in capturing consumer interest

Halal means permitted, allowed, authorised, or lawful according to Islamic Sharia Law, and halal food refers to food that adheres to this law. By contrast, haram means forbidden or unlawful, and haram foods are not to be consumed. Attaining halal certification is not only about using halal raw materials or products and Islamic slaughter methods. The halal assurance system is an integrated management system that encompasses all processes including product development, purchasing, production, quality control and warehousing.

 

A 2021 halal food lifestyle study conducted by Mastercard-Crescent Rating in Singapore revealed that Muslim consumers in the country have the greatest trust of halal assurance in establishments that have halal certification, a Muslim-friendly rating, the halal logo in Arabic or indications of ingredients suitable for Muslims.

 

National halal regulations push halal certification and global trade

To meet market needs and further strengthen consumer trust in halal products, countries in the region are adjusting their Islamic economy strategies.

 

In October 2021, Pakistan, the country with the second largest Muslim population in the world, approved new mandates for the Pakistan Halal Authority to promote halal products locally and internationally as a move to enter the global halal market.

 

Indonesia — which has the largest Muslim population in the world at 207 million people — introduced the Halal Product Law in 2019. Under this law, all consumer products and related services that enter and are traded in the country must be halal-certified. Some businesses have until this year to comply, and there are also exceptions to the law, such as allowing haram products including alcohol, pork or pork by-products, blood and meat not slaughtered according to Islamic method.

 

Likewise in Saudi Arabia, the kingdom extended its mandatory halal certification in 2019 to also cover imported chilled and frozen foods, confectionery, long shelf life products, milk and other dairy products and oils and fats.

 

Even countries outside of the Organization of Islamic Cooperation (OIC) are picking up on the trend, with Singapore, the Philippines and South Korea setting up agreements with OIC countries to explore various partnerships on the import and export of halal products and related services. In the UK, M&S Food launched its own range of Western cuisine halal ready-meals.

 

Avenue for halal food-related apps, cloud kitchens and new product categories

Covid-19 disrupted the halal food supply chain, but it also led to growing urgency for countries to be self-sufficient, develop local and regional production which can address food security and supply chain concerns, and encourage growth and innovation in the local halal food industry.

 

Then, there is the rapid digital transformation brought on by Muslim consumers looking for healthy, flavourful and convenient meals that can be delivered. Grocery e-commerce and home deliveries spiked, opening up avenues in halal food and grocery delivery, including halal cloud or ghost kitchens. Jumping on this opportunity is Dubai-based cloud-kitchen platform Kitopi. The company raised US$60 million in Series B funding in February 2020 and US$415 million in Series C funding in July of 2021 to help the company expand further in the Middle East and enter the Southeast Asian market.

 

There’s also great interest in halal-food related apps. For example, delivery startup Jahez in Saudi Arabia raised US$36 million for its commission-free halal food ordering website, DeliverDXB, which launched in Dubai March of 2020.

 

While halal ready-to-eat and ready-to-cook meals experienced a boom amidst the pandemic, there is much room for growth when it comes to offering new products and variety within each category. Currently, majority of new product launches with halal claims came from sweet, biscuits and cookies, followed by seasoning and poultry.

 

Alcohol-free drinks, which recorded a global 32% increase in new product development from 2018 to 2019, is another area of opportunity. In APMEA, the low- or no-alcohol beverage market has a projected growth rate of 7% from 2019 to 2025. The trend in the region is driven by health and government regulations, and growth is primarily seen in beer, with the non-alcohol beer market expected to increase by 18.9% between 2014 and 2024.

 

Adding the natural taste of botanicals—without the presence of alcohol—has long been a challenge for beverage brands. Ethanol has traditionally been used in combination with water for botanical extraction, and although it is removed via distillation later, around 0.5% ethanol remains in the final extract.

 

However, there are new technological advancements that allow for the use of only water and vinegar as solvents, these have great solubility and 0% ethanol, making them suitable for inclusion in products with halal and kosher certification. Using vinegar as a solvent creates a clean label without preservatives and is a cost-effective method to bring out very intense aromatic profiles.

 

Botanical sources of flavour have great potential with more yet to be explored and these innovations will help brands break the perception that alcohol-free beverages lack taste.

 

Non-Muslim consumers are drawn to halal foods

Because of the stringent regulations in attaining halal certification, halal cuisine has evolved from being a religious dietary choice to an assurance of safe, healthy, hygienic and reliable food. Research studies show that non-Muslims have a positive perception of halal food products and demonstrate intentions to buy them as they know halal food is appropriately processed.

 

These market studies and sentiments are further reflected on-ground. Consumers polled in the 2020/2021 State of the Global Islamic Economy Report by DinarStandard indicated that their non-Muslim friends have a positive view of halal food and often perceive it as being more hygienic and healthier.

 

Despite a turbulent year, the halal food sector was the least affected by Covid-19, with just an estimate 0.2% dip from 2019 to 2020. The move to adopt uniform halal standards across OIC countries will allow them the opportunity to raise the standard of halal food and further strengthen the perception and market share of halal products in the global food trade.

The Department of Agriculture and Farmer Welfare, Government of India in association with the World Economic Forum (WEF), India organised a one-day stakeholder consultation on Public Private Partnership in Digital Agriculture here today.

 

It was chaired by Shri Manoj Ahuja, Secretary, Department of Agriculture and Farmer Welfare. Shri Ahuja referred to the Union Budget speech for 2022-23 which reads out a policy vision on 'Delivery of digital and hi-tech services to farmers with involvement of public sector research and extension institutions along with private agritech player and stakeholders of agri value chain'.

 

Subsequently, Shri Rajeev Chawla, Chief Knowledge Officer (A&FW) shared insights on the conceptual framework on Public Private Partnership for Digital Agriculture. He also shared pertinent points on data sharing, technology validation and need of a sandbox.

 

Shri Pramod Kumar Meherda, Joint Secretary (Digital Agriculture, DA&FW) spoke about the perspective of digital agriculture involving modern technologies which are transforming the agriculture sector. He also stressed on the role of each stakeholder in realising the potential of digital agriculture.

 

From state perspective, Shri Ajit Kesari, Additional Chief Secretary, Agriculture, Madhya Pradesh also shared his views on digital agriculture and its potential stressing the need for a framework for bringing technology into Agriculture.

 

Taking the session forward, Shri Purushottam Kaushik, Head, C4IR, WEF-India laid out the plan for stakeholder consultation. Six consultation groups were formed to deliberate on PPP Governance, Data, Sandbox, Access to Markets, Access to Finance and Access to Inputs and Advisories.

 

The consultation was attended by more than 140 participants from diverse stakeholders including different state governments, state agriculture universities, ICAR, agritech start-ups, agri industry, banks, think tank, civil society, and farmer organisations.

 

Shri J. Satyanarayana, Chief Advisor, WEF-India and Shri Rajeev Chawla provided insights on how inputs from the consultation will be further deliberated to develop this initiative. The consultation ended with vote of thanks by Shri Rakesh Kumari Tiwari, ITS, Director (Digital Agriculture, DA&FW).

Telangana, the largest producer of turmeric and the second-largest producer of chillies in India, exported spices worth around $200 million in the 2020-21 financial year, witnessing a CAGR (compound annual growth rate) of 37 per cent over the last five years.

 

Though the State produces 30 per cent of the country’s turmeric production, it hardly contributes to its exports. It were chillies that drove exports from the State, according to Drip Capital, Inc., a global trade finance company.

 

As the terrains of Telangana and Andhra Pradesh are highly suitable for chilli production, the two States accounted for over 60 per cent of the country’s chilli exports in in 2020-21. 'Given that Covid-19 has fuelled a new wave of appreciation for ayurveda and ethnic Indian food, the demand for convenience, and the desire of people to experiment with different flavours, Telangana spice exporters can leverage opportunities from these emerging trends to make their mark in the export market,' Pushkar Mukewar, Chief Executive Officer and Founder of Drip Capital, said.

 

'Considering the medicinal value of turmeric and the global preferences of beverages like turmeric latte as immunity boosters, Telangana’s turmeric exporters need to stay updated on market developments and innovate their products,' he said.

 

This, he said, would help strengthen ‘Brand India’ globally and allow spice traders to better cater to international markets.

 

Trade sources said turmeric production fell by nearly one lakh tonnes last year to 11 lakh tonnes, owing to lower production in States like Telangana, Tamil Nadu and Karnataka.

Chief Minister Y.S. Jagan Mohan Reddy formally inaugurated the Indo German Global Academy for Agroecology, Research and Learning (IGGAARL) in Pulivendula constituency of Kadapa district on Thursday.

 

The academy is a fallout of the joint effort between the Federal Government of Germany and the Government of India to strengthen the ongoing initiatives in the State and develop the science behind natural farming.

 

The IGGAARL will encourage research through competitive grants, involving globally and nationally acclaimed research institutes and universities, besides working closely with the Rythu Sadhikara Samstha (RySS), which drives the Andhra Pradesh Community-managed Natural Farming (APCNF).

 

Mr. Jagan Mohan Reddy said the State was taking a slow, yet formidable step towards natural farming, as the centre would take up training programmes for farmers at the grassroots level.

 

With knowledge transfer, the institute aimed at transforming 10,700 farmers into ‘farmer scientists’

 

The idea was to bring down the cost of production and, at the same time, focus on improving yield as well as quality of the produce.

 

The Chief Minister also said that the Rythu Bharosa Kendras (RBK) would make necessary products and tools available for the farmers at the village level.

 

Jochen Flasbarth, Secretary of State in the Ministry of Development Cooperation, called 'production of enough food' as a top priority, along with addressing land degradation, biodiversity loss, water scarcity and pollution.

 

'Together, we are pursuing the 2030 agenda and implementation of Paris Climate Agreement,' he added.

 

Christoph Kessler, Director of KfW, The German Development Bank’s India Office, said the German embassy had appraised the national farming programme before recommending the same to the German government.

 

Agriculture Minister Kakani Govardhan Reddy, district in-charge Minister A. Suresh, MP Y.S. Avinash Reddy and Collector V. Vijayarama Raju took part.

Bangladesh government has given permission to 280 private firms to import 8.37 lakh tonnes of rice as different corporate organisations and unscrupulous traders are allegedly trying to create an artificial crisis in the market of rice across the country.

 

‘The food ministry has given permission to some 280 private firms to import 8.37 lakh tonnes of rice from abroad within next August aiming at tackling the artificial crisis of rice, caused mostly by some unscrupulous hoarders in the country,’ said Muhammad Mahbubur Rahman, senior assistant secretary (Foreign procurement) of the Ministry of Food.

 

Of the total import, these firms will import some 7.21 lakh tonnes of parboiled and 1.16 lakh tonnes of non-boiled (Atop) rice, according to an official order.

 

The private sector importers have been asked to open the Letter of Credit (LC) within this month to import the amount of rice and market those food grains within August this year.

 

The government has given permission to the importers and traders of the private sector for importing rice with a 25 per cent tax with a view to ensuring its adequacy to stable the volatile rice market.

 

Some private importers and traders have already submitted their applications to the ministry intending to import rice.

 

‘The importers, who have been given permission, will have to import rice within a month of opening LC...A portion of the imported rice must have to be available in the market within the next 15 days of reaching those food grains to the country,’ he added.

 

On June 22, the National Board of Revenue (NBR) under the Internal Resources Division of the Finance Ministry issued a notification clearing a food ministry proposal to cut import tax for facilitating rice import under the private sector.

 

Importers would have to just pay only 25 per cent import tax - 15 per cent regulatory duty, five per cent advance tax and five per cent advance income tax, according to the NBR notification, adding that ‘There would be no customs duty. Customs duty was 25 per cent and regulatory duty was 25 per cent before.’

 

However, the food ministry proposed to allow rice import at 'zero tax'. Responding to the proposal of the ministry, the prime minister has also given her approval to import rice at zero tax. But, the NBR has given its clearance to import rice paying 25 per cent taxes in total.

 

According to the food ministry and Trading Corporation of Bangladesh (TCB) statement, retailers are selling per kg fine rice at Tk 65 to 80, which is up 14 per cent from a month ago. Prices of coarse rice edged up 8.6 per cent to Tk 48 to 53 per kg, during the same period.

 

At present, the food grain stock in the government godowns is around 16.41 lakh tonnes.

 

Of the grains, the stock of rice is around 14.08 lakh tonnes, 1.63 lakh tonnes of wheat and 1.07 lakh tonnes of paddy.