Indian Exporters Unhappy with Bangladesh's Rice Export Policy

24-Apr-2025 01:13 PM

New Delhi. Indian rice exporters have expressed dissatisfaction over Bangladesh’s rice import-export policies, especially following Dhaka’s decision to allow the export of 18,150 tonnes of aromatic rice through 133 selected firms.

Each exporter has been allotted a quota ranging from 100 to 500 tonnes, with a minimum export price (MEP) set at $1.60 per kg.

The Bangladesh government has also imposed strict conditions—exporters cannot exceed their allotted quota, transfer it to others, and the government reserves the right to ban exports at any time.

Bangladesh had imposed a ban on rice exports in October 2023 following a food crisis triggered by severe floods and adverse weather.

The export ban was lifted in January 2025, and quotas were announced in April. Bangladesh began rice exports in 2009-10, mainly to Europe, the US, and the UAE, among others.

Meanwhile, Indian exporters are unhappy with what they perceive as policy inconsistency. While India continues to supply rice to Bangladesh at low prices, Bangladesh is reportedly favoring trade ties with Pakistan, sparking discontent among Indian traders.

Some exporters argue that India should increase its rice prices to highlight its market value, but instead, a price war has led to declining tender rates—from $477 per tonne to $394.77 in recent bids for a 6 lakh tonne import plan.

The newly announced aromatic rice export quota from Bangladesh is expected to intensify competition for Indian exporters, particularly in this premium rice segment.