NEW DELHI: In a first of its kind arrangement between India and Bangladesh in recent years, India would be exporting around 5 lakh tonnes of parboiled rice to Bangladesh for meeting its domestic demand and creating a buffer stock.
Indian Government has authorised agri cooperative Nafed to export rice to Bangladesh. At present, Bangladesh is facing a shortfall of 1.5 million tonne (mt) of rice this year due to crop losses by heavy flooding in the recent months.
Meanwhile, in a bid to boost domestic rice supply, Bangladesh has cut import duty on rice twice in last couple of months. Recently, the import duty was slashed to 2% from existing 10%. In June, the import duty was slashed to 10% from 25%.
Trade sources said that India is well-placed to supply rice, because of physical proximity to Bangladesh compared to Vietnam, Thailand and Cambodia. The cargo consignment from India can reach Bangladesh within a day via land, or 3-4 days via the sea.