Why Bangladesh Is Expanding Rice Imports with 2 Lakh Metric Tons of Parboiled Rice from India?

By Megha Bajaj

Bangladesh is currently importing rice from various countries, including India. The primary reason behind Bangladesh's rice imports is the insufficient availability of rice to meet its current consumption needs. Indian rice exporters and millers have welcomed Bangladesh's decision to approve the import of 200,000 metric tons of parboiled rice from India. Indian millers observe this decision as an opportunity to boost the trade between the two countries and, in particular, to boost exports from South India. Now, a question arises: why did Bangladesh decide to import 200,000 metric tons of parboiled rice from India? The answer lies in the rising domestic prices in Bangladesh.

Affected Domestic Production Leads to Rice Imports

It is reported that damage to the paddy crop due to floods in Bangladesh has affected domestic production, leading to the decision to do parboiled rice imports of 200,000 tons. This new import allocation approved by Bangladesh is in addition to its previous plan to import approximately 900,000 tons of rice in the 2025-26 financial year to replenish stocks and stabilise domestic prices. In the context of this move, Bangladesh has also issued guidelines for rice importers, such as the imported rice must be of the non-aromatic parboiled rice variety with a maximum of 5% broken grains.

Furthermore, Bangladeshi importers must sell the imported rice in its original bags and provide information on storage and sales to District Food Controllers to prevent hoarding. Not only this, but responses to Bangladesh's decision to import 200,000 metric tons of parboiled rice from India are also emerging in the scenario. Experts monitoring the Indian rice industry believe that this decision could particularly benefit rice traders in West Bengal and Andhra Pradesh due to their proximity to Bangladesh and competitive pricing. Moreover, they state that this export of rice to Bangladesh will not only bring good profits to traders in these two states but will also lay the foundation for future orders.

Will importing Parboiled rice improve the domestic rice prices?

A rice expert commented on the quantity of rice being exported to Bangladesh, stating that Bangladesh made this decision due to increasing pressure on parboiled rice in its domestic market.

It is reported that rice prices in Bangladesh have witnessed a significant increase, especially in the steamed rice variety, which forced the Bangladeshi government to take this decision. Now, the question is whether the 200,000 metric tons of parboiled rice imported from India will be able to improve prices in the Bangladeshi domestic market. Rice market experts responded positively that it will help Bangladesh stabilise prices in its domestic market, and this decision by Bangladesh to import is also a good opportunity for Indian exporters to make profits.

Now, when it comes to Bangladesh's plan for rice imports in the financial year 2026, the country is going to import 900,000 tons of rice this year, in which private traders will be allowed to import 500,000 tons, and 400,000 tons of rice are expected to be sourced through government-to-government deals and international tenders. As far as the quantity of rice exported to Bangladesh by Indian rice exporters is concerned, Indian exporters have already shipped more than 150,000 tons of rice to Bangladesh and have also received an international tender for 50,000 tons in October 2025.

India- currently the largest rice exporter

India is currently the largest rice exporter and also the largest rice producer. As far as rice prices are concerned, despite the pressure on global rice prices, the price of Indian rice remains competitive. Recently, the price of Indian white rice was seen at $351-360 per ton. One of the major reasons cited for the continuous growth in India's rice exports is the lifting of the ban on rice exports in March 2025.  Following the removal of the export restrictions by the Indian government, India's rice exports witnessed a sharp increase of 19.4 per cent in 2025, reaching 21.55 million tons. A significant portion of Indian rice exports was shipped to Bangladesh, reinforcing the country’s position as a reliable importer of Indian rice. Bangladesh’s recent decision to import 200,000 metric tons of parboiled rice from India is expected to create new profit opportunities for Indian rice exporters while further strengthening bilateral trade relations.

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