DHAKA: Bangladesh has raised import duty on rice to 55 per cent from 28pc to support its farmers, officials said on Thursday, amid widespread protests over a drastic fall in domestic prices.

The new tax rates, that came into effect on Wednesday, would further curb rice imports, especially from neighbouring India, which emerged as the biggest supplier to the South Asian country in 2017 after floods destroyed its crop.

The move would help protect farmers’ interests as growers are being compelled to sell their rice at lower rates than the cost of production, a food ministry official said.

Local rice prices have fallen to their lowest in three years due to ample supply from last year’s crop and forecasts of record output. Farmers have vented their anger over the falling prices of the staple grain by burning paddy.

The duty hike will make it nearly impossible for India to export rice to Bangladesh, traders in India said.

“Exports to Bangladesh is not possible after the duty hike,” said a New Delhi-based dealer with a global trading firm.

Published in Dawn, May 24th, 2019