Rice exporters are rushing to Bangladesh after it decided to allow duty-free import of 500,000 tonnes of the staple. Surprisingly, it has caused the Rice price to surge in India up to 14%. Moreover, it led to the creation of a disruption in the domestic supply of rice within the country. It has increased the retail prices of key rice varieties.
What do the Rice Exporters say?
Rice Exporters from West Bengal, Uttar Pradesh, and southern India had found information that Dhaka was planning to remove its 20% import duty on rice. The 20% import duty on rice led them to stock up near the Petrapole-Benapole border. Notably, the country importing rice has officially announced the duty removal on Wednesday, August 13. It has triggered the immediate shipments.
Retail Prices of key rice varieties
As per sources, retail prices of the Swarna variety have risen from Rs 34 to Rs 39 per kg, while Miniket from Rs 49 to Rs 55, Ratna from Rs 36-37 to Rs 41-42, and Sona Masoori from Rs 52 to Rs 56. Furthermore, Suraj Agarwal, CEO of RiceVilla, revealed that the National Revenue Board of Bangladesh made the announcement on Wednesday afternoon that led trucks from India to begin moving that same night. Not only this, he noted that it is more competitive to export rice through the Petrapole-Benapole border on a logistical and cost-wise basis, adding that rice millers from Uttar Pradesh and south India were using this route. Apparently, Bangladesh’s decision intends to stabilise its domestic rice market in the midst of high inflation. The country observed a 16% price rise in FY25 and had to import 13 lakh tonnes to meet demand. However, India’s rice stocks remain healthy despite of surge in rice exports.