DHAKA, BANGLADESH: The government is going to purchase 567,000 tonnes of rice at a cost of 15.92 billion taka (US$232.66 million) to meet the local demand amid another spell of price hike in the capital's retail and wholesale markets.The price of per kilogram of coarse rice rose by 1 taka (1 US cent) in the last two days at retail shops.The rice traders blamed the Indian government's decision to impose ban on rice export through private traders for the new spate of price increases.

"The advisory committee on purchase sits today to approve the rice procurement mainly from India through government channel," an official of the cabinet division said.

He said that 500,000 tonnes of rice would be imported from India and the rest 67,000 tonnes will be procured from local importers in a bid to boost the rice stock in the country.

The import from India will start this month once the deal is finalised and it will be completed within 75 days of signing of the contract, food ministry sources said.

The cost of procuring per kg of rice from India will be 27.93 taka (40 US cents) while the government will buy per kg of rice at 28.17 taka (41 US cents) to 29.40 taka (42 US cents) from local importers, sources said.

According to the daily price index of the Trading Corporation of Bangladesh (TCB), the market price of per kg of coarse rice was 28-30 (approximately 43 cents) on Saturday (9 Feb), while it was being sold at Tk 29-31 (approximately 45 US cents) Monday (Feb 11).

Besides, prices of rice in wholesale markets also rose by 20-40 taka (29-58 cents) per maund in the same period.

Talking to The Daily Star, Mohammad Nizam Uddin, secretary of Badamtali and Babubazar Rice Aratdar Samiti, brushed aside the allegations of local traders' syndication behind the price hike of rice.

The price of the staple food increased as India suspended rice export through private importers, he added.

"We did not get any supply from Indian traders in the last three days, which have caused a crisis in our market," said another rice trader at the Babubazar wholesale market of rice.

Our correspondent from Rangpur reports: A huge number of trucks loaded with rice have been stranded at Changrabandha port and its adjoining areas in India since 8 Feb as the Indian government put a ban on export.

Rabiul Islam, a rice importer from Pabna, told The Daily Star that on an average 20,000 tonnes of rice is imported from India per day.

Our Benapole correspondent reports: The Indian rice exporters reacted sharply over the government decision and is thinking about sitting with the authorities concerned to find a solution to the problem.

Amit Dhar, a rice exporter to Bangladesh, Monday told The Daily Star that they had some informal talks with the Indian government on the matter.

"We are expecting to resolve the crisis within a short time," he added.

Bangladesh authorities held a series of meetings with its Indian counterpart to fix prices of rice, which the Indian government had pledged to export to Bangladesh after the cyclone Sidr.

The West Bengal Essential Commodities Supplies Cooperative Limited (WBECSCL) will supply the rice to the Bangladesh government under the state-to-state deal.

Cost for importing per tonne of rice through seaports will be $414 while through river ways, it will be $400. A total of 250,000 tonnes of rice will be imported--125,000 tonnes each through the seaports and the river ways.

Same quantity of rice will also be imported by road at the cost of $394 per tonne.

Meanwhile, $388 will be spent for importing per tonne of rice through railways for the rest 125,000 tonnes.

The purchase committee is likely to approve the deal to import rice from India at the cost of 13.96 billion taka ($204.01 million) Tuesday (12 Feb).

After the purchase committee approves the deal to import rice from India Tuesday, Directorate of Food would sign a contract with the WBECSCL, food ministry sources said.

Director General of Directorate of Food Molla Waheeduzzman will sign the contract, who is in Kolkata at present leading a delegation of the directorate.

The government will procure 25,000 tonnes of rice from a local importer at the cost of $402 per tonne and another 42,000 tonnes from 13 importers at the cost of $420-$430 per tonne.

Meanwhile, government stock of rice is being used up fast in recent days.

Yesterday's total stock of rice was 396,000 tonnes, which was over 400,000 tonnes in last week, government sources said. (By REJAUL KARIM BYRON And SHAHEEN MOLLAH/ The Daily Star/ ANN)