BB moves to stabilise rice market

Bangladesh Bank yesterday took two major steps to stabilise rice prices and increase its supply in the local market.

The move comes at a time when price millers are not selling rice to the government as the price of the staple is higher in the local markets.

Yesterday, the central bank issued a circular to all commercial banks directing them to realise the loans given to rice traders and mill owners within 30 days.

The BB officials said the directive has been issued so that the rice millers cannot hoard rice.

In another directive, the central bank told the banks that the importers will be allowed to import rice without making any advance payment.

In the circular, the BB advised the banks to open LC with zero margin in importing rice to ensure adequate supply in the local market. The rice importers will enjoy the facility till December 31 this year.

The circular said, in recent times, floods in haor areas, excessive rainfall and natural disasters have created instability in the rice market.

The central bank has relaxed the conditions for LC margin to encourage import of rice in the private sector.