The Government announced it will reduce import duties on rice to 10 percent from the current 25 percent. The measure aims to curb prices of rice, which reached record highs in May (FPMA Price Warning) after flood-damage in early April and May to the 2017 main boro paddy crop, accounting for some 55 percent of the annual output. Lower imports after the imposition of higher duties on rice in June last year and, more recently, increased demand ahead of the Ramadan provided further support. Also in response to the high prices, the Government announced in early May that it plans to import 600 000 tonnes of rice through Government-to-Government deals with neighbouring countries including Thailand, Viet Nam and India. In addition, the Central Bank has removed the Letter of Credit margin on rice imports until 31 December.