Bangladesh
needs to take both tariff and
non-tariff measures to protect
its rice market from dumping by
Indian exporters. Expressing this
view at a policy dialogue in the
city yesterday, experts recommended
various options like raising import
tariff and LC margin and lowering
domestic rice production cost
by expanding rural electrification
and subsidising irrigation.
In response, Food Minister Abdullah
Al Noman expressed the government's
readiness to use "all available
trade-defence measures" such
as calibration of applied tariff
within the bound levels and imposition
of anti-dumping, countervailing
or safeguard duties to protect
local production. "Let there
be no doubt in anybody's mind
that our national interests are
supreme for our government,"
Noman said.
The Centre for Policy Dialogue
(CPD), a leading think tank, organised
the dialogue on 'Liberalisation
of Crop Sector: Can Bangladesh
Withstand Regional Competition?'
The nearly four-hour discussion,
held at the BRAC Centre, was largely
attended by policy planners, local
and foreign experts, agriculturists,
economists, diplomats and representatives
of private and public sector bodies.
Noman and former Deputy Speaker
Prof Ali Ashraf spoke as chief
guest and special guest respectively.
Member of the CPD Board of Trustees
and Bangladesh Rice Foundation
Chairman M Syeduzzaman chaired
it. CPD Executive Director Debapriya
Bhattacharya delivered the address
of welcome.
Head of Social Science Division
at the International Rice Research
Institute (IRRI), Dr Mahabub Hossain,
presented the keynote paper titled
'WTO and Trade Liberalisation
for the Crop Sector.' CPD Research
Fellow Uttam Kumar Deb is the
co-author of the paper.
Dr Mahabub in the paper said,
"In order to push rice exports,
the government of India has taken
a decision to release stocks from
the FCI (Food Corporation of India)
to private exporters at a subsidised
rate of US $127 per ton (milled
rice) while the economic cost
is US $ 253. This policy will
expose the Bangladeshi rice market
to dumping by Indian exporters."
The dialogue over, Debapriya told
newsmen, "We've to think
now whether we should go for any
anti-dumping measures. Our import
duty on rice is only 30 percent
whereas it is as high as 70 percent
in India." Dr Mahabub explained
in his paper how India raised
import duties on various farm
products to protect its domestic
crop production and market. The
noted economist said, "India
has turned backwards from the
policy of liberalisation initiated
in the early 1990s. External trade
has been brought back under state
trading agencies from private
traders.
For staple grains, India follows
a policy of subsidised exports
and highly restrictive import
policy." Some discussants
recalled India's anti-dumping
measures against export of battery
to that country and strongly pleaded
for "proper protection"
to Bangladesh's agriculture sector
within the WTO (World Trade Organisation)
bindings. "We allowed the
private sector to import rice
but India imports foodgrains only
through state-run Food Corporation
of India (FCI). This year, private
sector importers are bringing
in export-subsidised rice from
India without even considering
availability of locally grown
rice.
The government needs to monitor
the border constantly," said
Mahabub Hossain, a former director
general of Bangladesh Institute
for Development Studies (BIDS).
Senior Research Fellow of BIDS
Sazzad Zahir also wondered, "We
could do nothing about anti-dumping
measures against our battery export
to India. Now what should we do
about rice dumping?" Referring
to the finance minister's latest
statements regarding attaining
food autarky and continuos import
of food, some participants pointed
out that importers were bringing
in rice taking advantage of Indian
government's policy of giving
heavy subsidy on food export.
Dr Mahabub also said lowering
production cost could be another
way of fighting the dumping. Presenting
a comparative picture, he said
Bangladeshi farmers have to spend
about 51 dollars for irrigating
one hectare of land while it is
as low as 18 dollars in Andra
Pradesh and 32 dollars in Punjab
in India, only 18 dollars in Thailand
and 26 dollars in Vietnam.
"In Indian Punjab, electricity
is free for tube well irrigation
and free water is given from irrigation
canals. In Bangladesh, the major
source of irrigation is privately
owned shallow tube wells and power
pumps, mostly run by diesel."
Dr Mahabub recommended rapid expansion
of rural electrification and subsidised
power for irrigation. However,
some other participants suggested
subsidy in diesel price for irrigation.
Prof Ali Ashraf noted that Bangladesh
moved "faster than necessary"
in trade liberalisation during
early 1990s and became exposed
to rice dumping by India.
In his presidential speech M Syeduzzaman,
a former finance minister, stressed
on ensuring food security and
building up capacity for policy
formulation.
Other participants highlighted
the need for protecting rights
of poor farmers, enhancing public
sector investment on agricultural
research and more subsidies within
the permissible level of WTO.
The participants also included
former finance minister Abul Mal
Abdul Muhit, Bangladesh Rice Foundation
Trustee and CEO of Pran Major
General (retd.) Amjad Chowdhury,
DG of Bangladesh Rice Research
Institute (BRRI) Nurul Islam Bhuiyan,
Deputy Chief in agriculture ministry
Dr Nilufer Begum, Member Director
of Bangladesh Agricultural Research
Council (BARC) Jahangir Alam,
Noel Magor, Manager of the IRRI's
PETRRA (Poverty Elimination Through
Rice Research Assistance) project,
European Union representative
Ann Marshal, Australian High Commissioner
to Bangladesh Lauren Buckler,
Prof Abdul Bayes, FBCCI Director
A Rouf Chowdhury, Dr Abdur Razzak
MP, Krishak League General Secretary
Harun-ur-Rashid Howladar, former
economic minister to Bangladesh
mission in Geneva Syed Jamaluddin
and former DG of Bangladesh Jute
Research Institute SM Ilyias.
