HomeBUSINESSBangladesh reduces import duty on rice to 25%

Bangladesh reduces import duty on rice to 25%

The New Year is coming up with a hope to get the normal back in 2021.The upcoming year is all set to bring in good news for the rice exporters of India. It is because Bangladesh has reduced the import duty that was first laid on rice with a number of 62.5%, it has now reduced it to 25%. This step that is taken will make a way for al the Indian rice exporters, especially from West Bengal. This will also help to export the non-basmati rice to the country and also get better prices for the grain.

Vinod Kaul who is the executive director of all India Rice exporters association said that Bangladesh is said and is also expected to import near to about 500,000 tonnes of non-basmati rice in this financial year. He also said that already two Indian companies have got the contracts to export the rice in Bangladesh with around 100,000 tonnes of rice.

The government of Bangladesh  is right now in talks and discussions with the National Agricultural Cooperative Marketing Federation of India to import another 250,000 tonnes of rice. This will be under government-to-government trade initiative. He also said that the rest will be exported to the country by private sectors. The amount of around 150,000 tonnes will also be exported by private parties.

Rice exporters who are coming from the West Bengal will be getting the most of benefit because Bangladesh largely imports rice from that state. This is a place which is the largest producer of non-basmati rice in our country.

Suraj Agarwal who is the CEO of the Tirupati Agri Trade said that even though Bangladesh is one of the biggest producers of rice in the whole world, it has to do the import of rice this year, They had to do so because of the heavy floods and that have resulted for the loss of rice stock and also the prices of rice is getting high day by day in its local market.

Bangladesh reduces import duty on rice to 25%
Bangladesh reduces import duty on rice to 25%

Agarwal said that since last one year, the prices were very low for the common varieties of non-basmati rice in West Bengal. This was because of the low demand in the export and also by the local markets.

Agarwal said that the reduced import duty will support and strengthen the prices of rice in Bengal , as they were expecting and hoping that there will be huge export of Bengal’s rice to Bangladesh.

It is also said that the price that is released would be very good since the price of rice in Bangladesh’s local market is a lot higher than that in different parts of India. The variety of rice which is known as the IR64  is sold for a amount of Rs 24 per kg in Bengal, whereas it is sold at a price of Rs 40 per kg in Bangladesh.

The traders have said that only legal importers from Bangladesh will be allowed to apply to the ministry for getting the approval to import the rice by 10th January. The ministry will then be deciding that who will be allowed to import and who will not be allowed and also about the amount of rice that they can bring.

The price of this thin grains currently has a price range from about Tk 3,200-3,400 per sack of 50 kg which is sold in the market, and that amount is the highest in recent years. The retail price was around Tk 64-66 a kg and while on the other hand the price of medium and coarse grains has also gone up.

According to the Bangladesh Rice Research Institute, the four consecutive floods that were faced by the state this year have taken a heavy toll on the paddy production of the country. This could reduce the yields by around 1.5 million metric tonnes. Back in the year 2019, the country had produced a total of around 54.6 million tonnes of rice. If we are talking about the terms of per capita rice consumption then Bangladesh ranks number one in the world with a production of 268.5 kg.

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