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India says Bangladesh cutting rice import duty raised domestic prices by 10%

rainbowrascal

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Bangladesh's recent cut in import duty of non-basmati rice has pushed up prices of the grain in India's domestic markets by ten percent in the last five days, and is causing a rush among Indian exporters to go for deals with the neighbouring country.

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On June 22, Bangladesh came up with a notification that allows imports of non-basmati rice till October 31. This is for the first time that Bangladesh has started importing rice from India so early amidst apprehensions of a shortfall in production in the country due to floods in north and northeast. Usually, Bangladesh starts importing rice in September-October.

Rice gets costlier despite massive duty cut
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The pressure on the demand for rice in Bangladesh has grown as the Russia-Ukraine war and India's curbs on wheat exports have caused the drop in wheat imports while floods have harmed rice.

Prices of Indian non-basmati rice have risen to $360 per tonne from $350 per tonne in the global markets in the last five days following the news from Bangladesh came in, BV Krishna Rao, President of Rice Exporters Association in India, said, reports our New Delhi correspondent.

Suraj Agarwal, chief executive officer, Tirupati Agri Trade, said, "Prices of rice have already gone up by 10 percent and are still rising. Bangladesh generally buys rice from West Bengal, Uttar Pradesh and Bihar. In these three states, prices have shot up by 20 percent for the common variety of rice. The price rise in these three states have also left an impact on prices of rice in other regions where it has gone up by 10 percent."

Bangladesh's early buying of non-basmati rice is expected to boost Indian rice exports. According to the Directorate General of Commercial Intelligence and Statistics data, India had exported non-basmati rice worth USD 6.11 billion in 2021-22 as compared to USD 4.8 billion in FY21.

As Indian exporters eye rice deals with Bangladesh and buy up the crop, it has led to pressure on availability of the product in domestic market pushing up the prices, industry sources said.

India is the world's biggest rice consumer after China, and has a market share of more than 40% of the global rice trade.

 

UKBengali

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Shows how important BD has become to Indian economy.

It is now the 4th largest export market for India and will probably become the 3rd largest by 2030 after USA and China.
 
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mb444

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BD is self sufficient when it comes to rice unless there is a major loss of product due to floods. BD mainly plants flood resistant rice that can withstand general flood without issue.

BD however buys rice to ensure excess stock. Our domestic production whilst at self sufficient level does not allow for excess stock to be maintained.

BD generally maintains high tarrifs on rice to protect home industry. Reduction of import duty is a signal of anticipated poor harvest or that BD is expecting an inflation in global prices thus acting early to bolster reserves.

Indian price sensitivity to BD demand is not new.
 

bluesky

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Bangladesh's early buying of non-basmati rice is expected to boost Indian rice exports. According to the Directorate General of Commercial Intelligence and Statistics data, India had exported non-basmati rice worth USD 6.11 billion in 2021-22 as compared to USD 4.8 billion in FY21.
The $6.11 billion import figure for rice from India shocked me. Our brats regularly send news saying how Bd has become self-sufficient in food production.

This year the import from India may rise to $8 billion. This is how the BD govt is making the country self-sufficient in food production.
 
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rainbowrascal

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The $6.11 billion import figure for rice from India shocked me. Our brats regularly send news saying ho Bd has become self-sufficient in food production.

This year the import from India may rise to $8 billion. This is how the BD govt is making the country self-sufficient in food production.
That number is for the whole world, not just bd
 

Skull and Bones

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India should focus on improving yield by adopting scientific approach to farming, Indian should be able to ensure food security for all its neighbors.
 

PadmaBridge

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Shows how important BD has become to Indian economy.

It is now the 4th largest export market for India and will probably become the 3rd largest by 2030 after USA and China.

Shows how uncompetitive Indians are that tiny BD and relatively under developed BD is their 4th largest export destination.

Seven sister states are particularly beholden to BD.

I welcome it.

Whilst BD can easily find substitutes - India cannot find another export destination so easily.
 

Jackdaws

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Feeding for free? You don't take money? How nice.

Learn to feed yourselv first.
According to UN, India has the highest number hunger people outside of Africa.

I am against BD importing Rice from India. Its morally wrong to take away the food from poor hungry indians. And they dont eat any meat either.


It's not as if you have a say in the matter. The order comes from Delhi and your Govt does what it's told. That's how colonial relationships work.
 

Bilal9

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Learn to feed yourselv first.
According to UN, India has the highest number hunger people outside of Africa.

I am against BD importing Rice from India. Its morally wrong to take away the food from poor hungry indians. And they dont eat any meat either.

Interesting video in Hindi,

 

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