The interim government in Bangladesh has allowed exports of aroma rice after a year and a half, which leads to a section of Indian exporters that require New Delhi to increase rice shipping prices to Dhaka.
“After 7 years, the Bangladesh government has given a fee to export its variety of special rice, which could affect the varieties of Indian specialized rice such as Sona Masuri, Jera Kasala and premium rice not Basmati,” said one based in New Delhi.
Bangladesh expatriates used to consume rice of Indian origin, and the Bangladesh share will affect around 2.5 Lakh tons of Indian rice exports, he said.
Exporters who undermine each other
Another exporter said that Bangladesh’s strategy seems to be the cheapest import rice in India and export special rice or variety premium. “Our exhibitors try to undermine each other to sell rice to Bangladesh. At one time, exporters even made up of a scarce margin or $ 1/ton. It has the industry badly,” said the exporter.
This year, Bangladesh plans to import 6 Lakh of tons of rice, mainly parbo with sections or 50,000 tons. All tenders for imports recently ended. A characteristic of tenders was that the lowest offer in the first tender was $ 477 per ton. In the final tender, the lowest offer was $ 394.77.
“We have made cheaper rice to Bangladesh. Despite this, Dhaka is encouraging Pakistan trade,” said the second exporter. The export community has been aged by the efforts of the interim government to, in what it considers, belittle India.
‘Review strategy’
A commercial analyst based in New Delhi said that the government and exporters should review its export rice price strategy to increase value that could allow an increase in agricultural income. The analyst raised Conerns, in particular, on the decrease in the export price of the premium rice market.
The first exporter even suggested to suspend trade with Bangladesh for some time to send a strong message to Dhaka. India had always sought to help Bangladesh despite facing food inflation problems. Even when he prohibited rice and wheat exports, he made it clear that he would help a vulnerable and neighboring country.
Last week, Bangladesh Media reported that Dhaka has allowed 133 companies to export 18,150 tons of aroma rice. These will be in packages of 100-500 tons, depending on the capacity of each company.
Speakers for exports
However, Bangladesh’s Ministry of Commerce has presented conditions for shipments. These include the minimum export price ($ 1.6/kg), the quantity limit, the prohibition of the transfer of quotas and a probable curb at any time of exports.
Bangladesh suspended rice exports in October 2023 when the country faced food crisis due to climatic challenges, mainly floods. The interim government decided to allow exports in January.
Dhaka Been exporting aroma rice of 2009-10. It was exported to almost 140 countries, including Europe, the United States and the United Arab Emirates, before shipments were suspended.
Posted on April 22, 2025
