News Capsule: Bangladesh’s Strategic Rice Stockpiling: G2G Deal with Pakistan Deals a Blow to India
16-Dec-2025 04:21 PM
News Capsule: Bangladesh’s Strategic Rice Stockpiling: G2G Deal with Pakistan Deals a Blow to India
★ The Bangladesh government has moved to strengthen its strategic food reserves by procuring 5% broken (WR 5%) rice from Pakistan under a Government-to-Government (G2G) arrangement. The deal has been concluded at a CIFLO price of USD 395 per tonne.
★ Market sources indicate that despite Indian rice being around USD 40 per tonne cheaper in the current tender packages, the contract was awarded to Pakistan. This development suggests intensifying competition and weakening prospects for Indian-origin rice in the Bangladeshi market.
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Under the procurement programme:
★ The first package of 50,000 tonnes is scheduled for delivery by January 4, 2026.
★ Two more packages are expected to be announced subsequently.
★ In total, Bangladesh plans to purchase 600,000 tonnes of parboiled rice and 100,000 tonnes of white rice.
★ This move is part of Bangladesh government’s strategy to build buffer stocks, ensure domestic supply stability, and shield local markets from price volatility.
★ Industry participants caution that unless policy and logistics-level support for Indian exporters is strengthened, India’s share in South Asian rice markets could continue to face pressure.