Rice imports from India through the key land ports of Benapole and Hili have come to a halt following the expiration of the government’s duty-free import window on 15 April.

The move has already triggered a rise in rice prices in several markets.

The duty-free facility, active since 11 November last year, was aimed at stabilizing domestic rice prices.

On the final day, 21,290 tonnes of rice entered the country—20,815 tonnes through Hili and 475 tonnes via Benapole, according to port officials.

Government sources said the suspension is intended to protect local farmers as the Boro paddy harvest begins in regions like Sunamganj’s haor areas.

Officials noted that continued imports during harvest could lower market prices and harm farmers’ income.

Under the earlier open tender system, 102 companies were allowed to import 425,000 tonnes of parboiled rice and 162,000 tonnes of atap rice duty-free.

Prior to the waiver, rice imports faced a 62.5% duty, which had led to a suspension of imports since March 2023.

Since the waiver took effect, Hili Port alone received 267,857 tonnes of rice via 6,400 trucks.

Benapole Port was authorized to import 175,000 tonnes but received only 32,612 tonnes. With the duty-free period now over, importers must once again pay a 62% duty.

Benapole-based importer Alauddin Ali said 1,000 tonnes of rice remain stranded in Petrapole, India.

Importers have requested a 15-day extension to clear these consignments, but the government has yet to respond.

Despite the Pohela Boishakh holiday on 14 April, imports continued under special arrangements to meet the deadline.

“Around 120 trucks were arriving daily,” said Hili trader Mustafizur Rahman, adding that some duty-free rice remains on the Indian side.

Benapole Port Director Shamim Hossain said the government had extended the deadline four times—from an initial 25 days to the final cutoff of 15 April.

“Until new instructions are issued, rice imports from India remain suspended,” he said.

Market prices rising

Since 17 April, rice prices in Hili’s wholesale and retail markets have increased by Tk2 to Tk5 per kilogram.

A market survey found Swarna-5 prices up Tk2 to Tk54/kg, Shampa Katari Tk5 to Tk70/kg, Ratna Tk2 to Tk55/kg, Miniket  Tk5 to Tk74/kg, and Guti Tk4 to Tk53/kg.

Sakhawat Hossain Shilpi, president of the Hili Importers and Exporters Association, said the price rise is expected immediately after an import halt.

In contrast, prices remain stable in Benapole and Jashore markets due to the availability of freshly harvested domestic rice.

Trader Alam Hossain confirmed that local supply is entering the market, easing pressure on prices.

Production concerns ahead

According to the Bangladesh Grain and Feed Update (August 2024), rice production may fall short by 3% this year due to flood damage in Chattogram, Barisal, and Sylhet.

With demand exceeding 37 million tonnes and output expected at 36.8 million tonnes, any supply disruption could strain the market.

Paddy cultivation has also dropped by 3.5% to 11.5 million hectares.

For now, the government is focusing on protecting domestic farmers. However, rising prices suggest further policy adjustments may be needed to maintain market stability.