HomeIndiaRice prices jump 5% as Bangladesh cuts import duty

Rice prices jump 5% as Bangladesh cuts import duty

The prices of rice in India in the past week have increased about 5 per cent as neighbouring Bangladesh has again cut import duty on rice from 25 per cent to 15.25 per cent, according to an ET report. The reduction in import duty is expected to increase the rice demand from Bangladesh.

“Prices have suddenly shot up by up to 4 per cent after the Bangladesh government announced the reduction of duty on the import of rice. The neighbouring nation will buy rice from India as well as procure some quantities from Vietnam,” according to the report quoting Suraj Agarwal, CEO of Rice Villa.

Rice from Uttar Pradesh, Madhya Pradesh, Karnataka, West Bengal and Bihar are exported to Bangladesh, which imports sambha mansoori, sonam and kolam varieties of rice, according to the report. It also said that in the past one week, prices of these varieties have already increased by 3-4 per cent.

As West Bengal is nearer to Bangladesh, the country buys miniket rice from the Indian state. “Prices of miniket variety in West Bengal have firmed up by 5 per cent,” he said.

India, the world’s second largest rice producer after China, commands 40 per cen. Apart from high demand, this year, paddy also saw lower cultivation, which is also raising rice prices. The total area under paddy cultivation as on September 2 is lower by 5.6 per cent to 383.99 lakh hectares, compared with 406.89 lakh hectares last year.

Recently, wheat prices also saw a jump due to higher international demand. Russia and Ukraine are the major exporters of wheat accounting for about a fourth of the global wheat trade. The conflict between them led to the global wheat supply chain disruptions increasing the demand for Indian wheat. As a result, the price of wheat in the domestic market showed an increase. In order to ensure the food security of 1.4 billion people of the country, the decision was taken to put a prohibition on the export of wheat in May 2022.

The increased demand for wheat flour in the international market led to a significant price rise of wheat flour in the domestic market. Following this, to control domestic prices, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, recently approved the proposal to amend the policy of exemption for wheat or meslin flour. The move will now allow putting restrictions on the export of wheat flour, which will ensure a curb on rising prices of wheat flour in the country.

“The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the proposal for amendment of policy of exemption for Wheat or Meslin Flour (HS Code 1101) from export restrictions/ ban. The approval will now allow to put a restriction on the export of Wheat Flour which will ensure a curb on rising prices of wheat flour and ensure food security of the most vulnerable sections of the society,” according to an official statement.

With inputs from News18

The post Rice prices jump 5% as Bangladesh cuts import duty first appeared on IPA Newspack.

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