On Sunday, July 20, Industry stakeholders said that Indian rice millers and exporters are hopeful about an increase in demand and appropriate prices, as Bangladesh has planned to import 9 lakh tonnes of rice. As India accounts for 46% of global rice exports, it will become a huge beneficiary of this transaction due to its proximity, continuous supply, and competitive pricing.
Bangladesh will import four lakh tonnes through government tenders and another five lakh tonnes via private traders, as per told by exporters. This import plan has risen due to crop losses amid Massive rainfall, severely influencing the Amon paddy season.
CEO of Ricevilla Foods, Suraj Agarwal, told PTI that out of the total rice import plan, 4 lakh tonnes will be procured by the Bangladesh government through international tenders, whereas rest of the 5 lakh tonnes will be imported by private traders from the neighbouring country. The decision has been taken after the fear of crop loss amid massive rainfall affecting Bangladesh’s Amon Paddy season’s sowing currently.
Bengal, is at ideal position to benefit from the rice import plan by the Bangladesh authorities since 30-40 per cent of the private rice imports will likely be sourced from Bengal mills and traders, said Rahul Agarwal, director of Jai Baba Bakreswar Rice Mill Director and he did not predict any diplomatic hurdle amid India’s curbs on the import of garments and jute through the Petrapole border
Furthermore, he added,” Bengal Mills will also take part in the government tenders for 4 lakh tonnes. States such as Bengal, Jharkhand, Andhra Pradesh, Odisha, and Bihar will benefit the most,”
Popular Indian rice varieties like ’Swarna’, ’Ratna’, ’Miniket’, and ’Sona Masoori’ are anticipated to record price gains in West Bengal as well as southern India during this anticipated demand surge.
Not only this, but the stakeholders also asserted that Bangladesh’s early rice import plan indicates preventive steps ahead of possible floods amid the Amon season.
Interestingly, Bangladesh has procured around 3.76 Lakh tonnes of Boro paddy and nearly 9.5 lakh tonnes of rice out of the 14 lakh tonne goal. The procurement is expected to conclude by mid-August. Moreover, the country plans to increase its food-friendly programme to cover 55 lakh families, offering 30 kg of rice per month at Tk 15 per kg from the next month. In addition, the exporters believe development will further boost India’s position as Bangladesh’s chief rice supplier while stabilising for low-to-medium rice varieties in the domestic market.
Notably, Visakhapatnam and Paradip ports are major ones for rice exports.