Rice Prices have Risen by 10% in Just Five Days as a Result of Dhaka Duty Cuts

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Rice Prices have Risen by 10% in Just Five Days as a Result of Dhaka Duty Cuts
28 Jun 2022
6 min read

News Synopsis

Prices of Indian rice have risen 10% in the last five days after Bangladesh reduced import duties and tariffs on rice from 62.5 to 25%, prompting Indian traders to rush for export deals with the neighboring country.

Bangladesh issued a notification on June 22 allowing non-basmati rice imports until October 31. Bangladesh is importing rice from India for the first time, as there is concern that India will impose a ban on rice exports. In general, Bangladesh begins importing rice in September or October. Bangladesh is facing a food shortage as a result of the Russia-Ukraine conflict and India's ban on wheat exports, while floods have harmed rice cultivation in the country this year.

"In the last five days, prices of Indian non-basmati rice have risen to $360 per tonne from $350 per tonne in the global markets. This has happened after the news from Bangladesh came in," said BV Krishna Rao, president of Rice Exporters Association.

Rising wheat prices and falling imports have pushed up flour prices in Bangladesh, putting pressure on rice prices. Furthermore, early floods, storms, and heavy rains have hampered rice yields, raising concerns about further price volatility.

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