The prices of coarse rice continued to maintain the previous high level until yesterday (Friday) despite cut in import and regulatory duty by 18 per cent.
But prices of other rice varieties recorded some fall.
Traders and millers said the cut in import duty will have some positive effect on the prices. The decline is expected to be more prominent after the Eid festival.
The revenue board cut the import duty of rice to 10 per cent from 25 per cent and waived 3.0 per cent regulatory duty on Wednesday to lower prices of the staple in the local market.
The Internal Resources Division (IRD) issued a Statutory Regulatory Order (SRO) making the reduced duty effective from June 21, 2017.
Abdul Majid Bablu, a rice miller from Kushtia, told the FE that the prices of rice have come down by up to Tk 50 per kg except those of coarse rice varieties.
"The prices of coarse rice did not come down due to its short supply in the market," he said adding that the prices will fall after Eid.
The prices at retail level remained unchanged as different varieties of coarse rice were selling between Tk 46 and Tk 50 per kilogramme.
Traders in different markets in the capital said they had bought rice earlier at high prices.  
"The cut in duty has just been announced. It would need at least 15 days to take effect," Babul Hawlader, a trader in Kawran Bazar, said.
Market sources said import of more rice is in the pipeline.
It is alleged that the importers were delaying shipments in the hope that the government would soon go for a tariff cut.  
With rice prices going up in the global market, local traders are increasingly finding it difficult to make profit after paying high tariff on import.
Market sources said rice import was no longer lucrative for traders as they had to pay 28 per cent duty on top of high import costs.
Babu Bazar trader Mohammad Asadullah said the duty cut has not yet impacted the market. But very soon it will, he expressed the hope.
According to SRO on import duty cut, husked (brown) rice, semi-milled or wholly-milled rice, whether or not polished or glazed, fortified rice kernel, other semi-milled or wholly-milled rice, whether or not polished or glazed, and broken rice can be imported by paying 10 per cent customs duty (CD).
The Customs wing cut the 25 per cent CD to 10 per cent on import of rice. The tax incidence on import of rice was 28 per cent including 3.0 per cent Regulatory Duty (RD).
As per Customs law, the RD was imposed on most of the products under the 25 per cent CD slab. As the CD on rice import has been reduced to 10 per cent, the RD would not be applicable to the item.
The government had imposed the high import duty on rice to ensure fair prices for the local growers. But, a substantial hike in rice prices forced the government to go for import.
An early flashflood that struck the Haor region in late March caused a loss of Boro rice totalling one million tonnes.
According to market sources, blast attacks (fungi attack) also led to a loss of Boro rice in 19 districts. But the agriculture department claimed that the loss was nominal.
Experts and agricultural economists say the government's market intervention will stabilise rice prices very soon.
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Source: The Financial Express