Kolkata: Bangladesh’s recent move to seal land ports with India and increased fresh harvests locally have brought down rice prices by 16% in the eastern part of the country in the past ten days, according to traders, who said the commodity might see a further decline in prices.
Prices of the popular parboiled miniket rice, which was also exported to Bangladesh to the tune of 45,000-50,0000 tonnes per month, have fallen to Rs 53 per kg from Rs 62 per kg.
The rest of the country had already witnessed a price drop in December, but rice prices remained high in eastern India due to the thriving private exports to Bangladesh.
“The private order for parboiled rice, amounting to 50,000 metric tonnes per month, was initiated in January by Bangladesh, following the geopolitical tension in the country. Before this, the Bangladesh government relied on government-to-government imports. The shift to private orders signified a change in strategy, with rice prices reflecting demand and supply fluctuations,” said Keshab Kumar Halder, managing director at Halder Venture, a rice exporter.
The private order quantity for parboiled rice did not exist prior to the geopolitical tensions. For a long period, the Bangladesh government did not import any rice and later used to import it through the government whenever required, said Halder.
Rice imports through Benapole land port have stopped since April 15 on the instructions of the Bangladesh food ministry. Rice imports from India will remain closed under further instructions, Benapole port director told the media recently.
On November 17 last year, the Bangladesh government allowed 92 importers to bring rice from India to keep the prices of the major staple in the country under control. It allowed import 273,000 tonnes of rice from India. Exports from India picked up from December-end.
Importing rice from West Bengal costs much less for Bangladeshi importers through the Petrapole-Benapole land port.
Suraj Agarwal, CEO of RiceVilla, a rice exporting and marketing firm, said, “West Bengal had produced 11.52 million tonnes of parboiled miniket rice. While rice prices were falling in other parts of the country, the eastern belt, on the contrary, witnessed a spike in prices. West Bengal supplies parboiled rice to the states of Odisha, Jharkhand, Bihar, Assam and the Northeast after meeting its demand. Prices soared from Rs 45 (per kg) to Rs 62 within the period from January to the first week of April.”
Due to the high prices of miniket parboiled rice, people shifted to other, cheaper varieties of rice, said Agarwal. “Since the demand for miniket rice has dropped and Bangladesh has announced not to import rice through the private route, prices have started falling and may correct further as arrivals in the market increase,” he said.
Prices of the popular parboiled miniket rice, which was also exported to Bangladesh to the tune of 45,000-50,0000 tonnes per month, have fallen to Rs 53 per kg from Rs 62 per kg.
The rest of the country had already witnessed a price drop in December, but rice prices remained high in eastern India due to the thriving private exports to Bangladesh.
“The private order for parboiled rice, amounting to 50,000 metric tonnes per month, was initiated in January by Bangladesh, following the geopolitical tension in the country. Before this, the Bangladesh government relied on government-to-government imports. The shift to private orders signified a change in strategy, with rice prices reflecting demand and supply fluctuations,” said Keshab Kumar Halder, managing director at Halder Venture, a rice exporter.
The private order quantity for parboiled rice did not exist prior to the geopolitical tensions. For a long period, the Bangladesh government did not import any rice and later used to import it through the government whenever required, said Halder.
Rice imports through Benapole land port have stopped since April 15 on the instructions of the Bangladesh food ministry. Rice imports from India will remain closed under further instructions, Benapole port director told the media recently.
On November 17 last year, the Bangladesh government allowed 92 importers to bring rice from India to keep the prices of the major staple in the country under control. It allowed import 273,000 tonnes of rice from India. Exports from India picked up from December-end.
Importing rice from West Bengal costs much less for Bangladeshi importers through the Petrapole-Benapole land port.
Suraj Agarwal, CEO of RiceVilla, a rice exporting and marketing firm, said, “West Bengal had produced 11.52 million tonnes of parboiled miniket rice. While rice prices were falling in other parts of the country, the eastern belt, on the contrary, witnessed a spike in prices. West Bengal supplies parboiled rice to the states of Odisha, Jharkhand, Bihar, Assam and the Northeast after meeting its demand. Prices soared from Rs 45 (per kg) to Rs 62 within the period from January to the first week of April.”
Due to the high prices of miniket parboiled rice, people shifted to other, cheaper varieties of rice, said Agarwal. “Since the demand for miniket rice has dropped and Bangladesh has announced not to import rice through the private route, prices have started falling and may correct further as arrivals in the market increase,” he said.
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