Since Bangladesh reduced import duties and taxes on rice from 62.5% to 25%, Indian businessmen have rushed to strike export deals with the neighbouring country, driving up the price of rice by 10% on both the local and international markets.
Bangladesh published a notification on June 22 allowing the import of non-basmati rice through October 31. Bangladesh has never begun buying rice from India so soon, out of concern that India would impose a ban on rice exports. Usually between September and October is when Bangladesh begins importing rice. Bangladesh is experiencing a shortage of basic foodstuffs as a result of the war between Russia and Ukraine, India’s prohibition on wheat exports, and the decline in wheat imports. This year’s floods have also negatively impacted rice cultivation in Bangladesh.
“Prices for Indian non-basmati rice have increased in the last five days, going from $350 per tonne to $360 per tonne on the international markets. After hearing the news from Bangladesh, this has occurred “BV Krishna Rao, the organization’s president, remarked.
Tirupati Agri Trade’s chief executive officer, Suraj Agarwal, said “The cost of rice has already increased by 10% and is continuing to rise. Bangladesh often purchases rice from Bihar, Uttar Pradesh, and West Bengal. The cost of the common kind of rice has skyrocketed by 20% in these three states. Rice prices in other regions have increased by 10% as a result of the price increase in these three states.”
