Indian Rice Traders Demand Price Hike for Exports to Bangladesh

22-Apr-2025 11:50 AM

Indian Rice Traders Demand Price Hike for Exports to Bangladesh
★ Bangladesh's interim government has allowed the export of its specialty aromatic rice after a hiatus of nearly a year and a half. This move has raised concerns among Indian exporters, as it may impact demand for Indian premium rice varieties such as Sona Masuri, Jeera Kasala, and other non-basmati premium grains.
★ Exporters argue that Bangladesh is importing cheap rice from India and then exporting its own aromatic rice, hurting the Indian rice market in the process.
★ One exporter revealed that in the race to keep prices competitive, Indian rice was sometimes sold with a meager profit of just $1 per ton, which has negatively impacted the industry.
★ Bangladesh is planning to import 600,000 tons of rice this year, with recent tenders showing a sharp drop in rice prices from $477/ton to $394.77/ton.
★ Some trade experts and exporters are urging the Indian government to revise its strategy and increase the export prices to Bangladesh to ensure fair returns for farmers. A few have even recommended a temporary halt in rice exports to Bangladesh.
★ Bangladesh, on the other hand, has imposed certain conditions on its rice exports — including a minimum export price of $1.6/kg, restrictions on quota transfers, and a provision to suspend exports if necessary.