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2,181 rice mills to lose licenses

  • Staff Correspondent
  • 20 November, 2021 12:00 AM
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2,181 rice mills to lose licenses

Some 2,181 rice mills that either breached the terms of contracts for supplying rice or avoided signing any contract with the government during the last Boro season will lose their licenses.

The government will also cut off power connections to the rice mills, according to recent directives from the food ministry.

The food directorate will send a list of such millers to the Power Division for their electricity connections to be snapped so that they cannot operate.

The Directorate General of Food has been asked to cancel licenses and forfeit security deposits of the millers, who had agreements with the government but failed to supply rice.

Those who supplied 80 per cent or more rice will get back their security deposits under special consideration, according to the directives.

Millers, who supplied rice less than 80 per cent of the contract quantity, will face confiscation of their security deposits. The security deposits will be confiscated in proportion to the supply.

Raihanul Kabir, director (procurement) of the Directorate General of Food told the Daily Sun that they are working to take action against the millers. He said the list of the rice millers is yet to be finalised.

A total of 17,000 out of 19,000 automatic and husking rice mills signed contracts to supply paddy to the government during the last Boro season. The rest of the 2,000 stayed away from signing any contract, according to the food directorate.

A total of 181 millers breached contracts to supply paddy to the government, according to the food directorate. In 2020 millers supplied only 56 per cent of the contract quantity.

During the last Boro season, the government reset the paddy procurement price at Tk 27 per kg with a Tk 1 rise and parboiled rice at Tk 40 per kg, raising the price by Tk 3 per kg.