Rice prices surge up to 14%! Indian traders are rushing shipments to Bangladesh; here’s why
Rice prices in India surged up to 14% in two days as traders rushed exports to Bangladesh after it scrapped a 20% import duty on 500,000 tonnes. Swarna, Miniket, Ratna, and Sona Masoori varieties saw sharp retail price hikes. Indian stocks remain ample despite rapid shipments through the Petrapole-Benapole border.
Rice prices in India have jumped by up to 14% in just two days as traders rush to export to Bangladesh following its decision to allow duty-free import of 500,000 tonnes of the staple. The move has caused a temporary disruption in domestic supply, pushing up retail prices across key varieties, reported ET.According to traders from West Bengal, Uttar Pradesh, and southern India, they had advance information that Dhaka was planning to remove its 20% import duty on rice, prompting them to stock up near the Petrapole-Benapole border. Bangladesh officially announced the duty removal on Wednesday, triggering immediate shipments.At the consumer level, prices of the Swarna variety have risen from Rs 34 to Rs 39 per kg, Miniket from Rs 49 to Rs 55, Ratna from Rs 36–37 to Rs 41–42, and Sona Masoori from Rs 52 to Rs 56, as per ET.Suraj Agarwal, CEO of RiceVilla, said the National Revenue Board of Bangladesh made the announcement on Wednesday afternoon, and trucks from India began moving that same night. “Logistically and cost-wise it is more competitive to export rice through the Petrapole-Benapole border,” he noted, adding that millers from Uttar Pradesh and south India were using this route.
Bangladesh’s decision aims to stabilise its domestic rice market amid high inflation. The country saw a 16% price rise in FY25 and had to import 13 lakh tonnes to meet demand.Despite the surge in exports, India’s rice stocks remain healthy. CK Rao, a rice miller from Andhra Pradesh, confirmed his trucks left for Bangladesh on Thursday morning. Keshab Kumar Halder of Halder Venture Limited was cited by ET as saying that global rice prices had dipped due to surplus supply, but the Bangladeshi orders would “help the Indian market recover from the recent downturn by creating demand and partially offsetting the global price dip.
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Source : The Times Of India
