The New Nation - Internet Edition

Staff Reporter

Bangladesh Bank has settled US$42.66 million worth rice import LC within the first 10 days in January 2008. It has almost touched the US$65.22 million settled LC figure, recorded during the entire December 2007 for importing the staple food item.

A Bangladesh Bank publication on monthly Import LC position reviled this.

According to the statistics, rice import LC worth total US$138.13 million were opened during the first ten days of January 2008 which has almost reached the LC opening figure of US$156 million in December 2007.

"It reflects the Government's priority on rice imports," said an official of Bangladesh Bank, while talking to The New Nation.

So far on the direction of Bangladesh Government, the central bank has given priority to facilitate rice importers by settling more LCs in the shortest period of time. If this continues, settled amount of LC would exceed the July to November 2007 record of US$245.10 million, Bangladesh Bank official informed.

However, the rice importers have welcomed the central bank policy. According to them, this would encourage importers to import rice more, means increase in rise reserves. This would also help to reduce local market price of rice.

"If the upcoming Boro crop get interrupted by any natural calamity this year as well, another wave of food crises would be unavoidable. This will further increase rice price in local markets, causing another phase of uncontrolled market in Bangladesh," said an expert economist.

To ensure food security in Bangladesh, we should import sufficient amount of rice, well before the possible crisis. And current LC liberalisation policies by the central bank would encourage importers in both the private and public sector, he added.