The government announced last week to provide up to 30% export subsidy for private traders who will be exporting rice abroad. Given the current poor demand of rice in international market, a rough estimate says the government would have to bear something between Tk600 crore to Tk1,200 crore as export subsidy, even if the millers and traders having big rice stocks manage to find export markets for 1.5 million tons of rice. To Dr Akhter Ahmed, who heads the Washington-based International Food Policy Research Institute’s (IFPRI) Bangladesh operation, rice export is a poor proposition as it will only benefit the traders, not the farmers. Akhter Ahmed fears export of rice with price subsidy facility would rather result in high domestic rice prices; and will not help farmers getting fair price for their paddy. Moreover, the government took the rice export decision at a time when global demand for rice is fast shrinking with main players in the rice export markets India, Thailand and Vietnam getting nearly no fresh orders.

Source: Dhaka Tribune June 02, 2019 18:33 UTC