Export of Aromatic Rice from Bangladesh Poses Challenge for India

22-Apr-2025 08:26 PM

New Delhi. Indian rice exporters have raised concerns over growing competition from Bangladesh in the global market, particularly in the aromatic and premium non-Basmati rice segment.

They have urged an upward revision in India's rice export prices to Bangladesh, as the neighboring country is importing cheap Indian rice while exporting its high-grade aromatic rice at premium prices.

After a gap of one and a half years, Bangladesh has resumed the export of aromatic rice and, for the first time in seven years, has fixed an export quota, which may impact Indian exports.

Special varieties like Sona Masuri, Jeera Kasala, and other premium Indian non-Basmati rice types are now facing stiff competition, forcing Indian exporters to lower their offer prices.

The Indian rice industry fears that the export of around 2.50 lakh tonnes of premium rice could be affected. While Bangladesh continues to rely on cheaper Indian rice for domestic consumption, it is using the advantage to export high-quality rice globally.

Ironically, Indian exporters are engaging in aggressive pricing strategies to retain market share in Bangladesh, with export margins dropping to as low as $1 per ton, risking long-term financial losses for the Indian rice sector.

This year, Bangladesh has planned to import 6 lakh tonnes of non-Basmati Sela rice in batches of 50,000 tonnes through government tenders.

The export price in the initial tender was $477 per ton, which later dropped to $394.77 per ton, with India remaining the primary supplier.