After Bangladesh announced the import of five lakh tonnes of rice duty-free, there has been a huge jump in the rice market in India. Rice prices in the country have increased by up to 14 percent in just two days. The rush of Indian traders to export rice to Bangladesh has created a temporary imbalance in the country's domestic demand and supply.
Traders from West Bengal, Uttar Pradesh and South India said that they had information in advance that Bangladesh would temporarily lift the 20 percent import duty on rice. That is why they had kept the goods ready in the warehouses at the Petrapole border.
On Wednesday, the Bangladesh government officially announced the withdrawal of the 20 percent import duty on rice. After this, Indian traders are rushing to export rice to Bangladesh.
According to a report by the country's media outlet Economic Times, the price of golden rice at the consumer level in the Indian market has increased from Rs 34 to Rs 39 per kg after Bangladesh announced the withdrawal of import duty. In addition, Miniket is being sold at Rs 55 per kg from Rs 49, Ratna rice at Rs 41-42 per kg from Rs 36-37, and Sona Mussoorie is being sold at Rs 56 per kg from Rs 52.
Suraj Agarwal, CEO of Ricevilla, a rice export and marketing company in the country, said that after the National Board of Revenue of Bangladesh announced the withdrawal of import duty on Wednesday afternoon, rice trucks from India started entering Bangladesh that night.
He said, "It is convenient to export rice through the Petrapole-Benapole border in terms of both cost and transportation. That is why factory owners in Uttar Pradesh and South India are also exporting rice to Bangladesh through this land route."
There is a demand for Sorna rice all over India. On the other hand, Miniket rice is popular in East and North-East India. In addition, Ratna rice is consumed more in North India. And Sona Mussoorie is one of the main choices of residents of South India.
The Bangladesh government has announced the withdrawal of rice import duty in order to stabilize the country's domestic market and provide relief to consumers from inflation. Rice prices in Bangladesh increased by 16 percent in the 2024-2025 fiscal year. Bangladesh had to import 1.3 million tonnes of rice in that fiscal year to meet domestic demand.
Makil CK Rao, a rice miller in Andhra Pradesh, said, "My trucks left for Bangladesh on Thursday morning."
Keshab Kumar Halder, managing director of rice exporter Halder Ventures Limited, said there is excess supply of rice in the global market and government and private stocks in India are in good condition. This has reduced global rice prices. This export order from Bangladesh will create demand in the Indian market and help partially cope with the decline in global prices.
