Indian ban pushes up coarse rice prices

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Jasim Uddin Haroon
The prices of coarse variety rice soared by around 7.0 per cent in the wholesale market Sunday following the ban on non-Basmoti rice export by India.
The Indian government slapped last Friday a ban on the rice export to Bangladesh and other countries.
However, food adviser AMM Showkat Ali told the reporters Sunday that ban on rice export by India would not push the prices of rice in the local market up.
"This is their internal issue but it will not have any impact on the local market," the food adviser added.
He also said import of 500,000 tonnes of rice by the government of Bangladesh from India will not be affected by the latest ban.
"India imposed the ban on export of rice by private exporters, so we don't have any authority to take decision on the issue. But, this would not hamper the import of 500,000 tonnes of rice as pledged by the India government in December last," he added.
Food adviser, however, said the government would take initiatives to facilitate import of rice against which private traders of both Bangladesh and India had entered into contracts before the imposition of latest embargo.
One Joint Commissioner of Customs at Benapole told the FE that around several hundred rice-laden trucks had remained stranded at Petrapole landport following the sudden restriction imposed on rice export.
However, a meeting of council of advisers decided to discuss the issue with India shortly, official spokesman at the Chief Adviser's Office told reporters after the meeting.
While visiting the wholesale market at Babu Bazar-Badamtali in the city Sunday, it was found that the prices of Indian rice varieties had increased by around Tk 60 each maund.
"We sold Saturday 'Swarna', a coarse variety of Indian rice, at Tk 1050 each maund, but we are selling the same at Tk 1110 each maund," said one rice trader at Babubazar.
This means the prices of the Indian varieties increased by Tk 1.50 each kilogram at the wholesale level.
But the prices of the same variety recorded a rise by about Tk 3.0 at the retail level on Sunday.
Indian varieties which are popular in Bangladesh are Swarna (now being sold at Tk 1110 per maund at the wholesale level), Ratna (Tk 1060) and Guti (Tk 1070). These are all coarse varieties and mainly consumed by the lower income group of people.
Private rice traders import between 500 tonnes and 1000 tonnes each day from India through different land ports.
The prices of fine quality of rice might also rise shortly following the price-rise of the Indian varieties, a whole seller hinted.
General Secretary of Babubazar-Badamtoly Wholesale rice Market Nizam Uddin Ahmed told the FE that the price of Indian varieties increased following the export ban by the Indian government.
"We don't have any hand in it. It is the matter of demand and supply," he added.
He also said supply of fine local varieties of rice has also declined following the recent inclement weather.
He said the government should search alternative markets for rice procurement as the frequent export ban by India makes the local market volatile.
Indian exporters hopeful about rice export
Meanwhile, UNB adds from Benapole: About 70,000 tonnes of Indian rice, for which purchase deals have been made before the export ban, are likely to be shipped to Bangladesh.
Indian rice exporter Arun Dhar based at Bongaon in West Bengal told the news agency by phone Sunday that they were negotiating with the government.
"The authority is responding positively to allow shipment of the consignments, for which L/Cs had been opened at US$ 500 per tonne before the export ban was imposed on February 7."
"Hopefully, the matter will be settled in a couple of days and we will resume shipment," said Arun Dhar.
Another Indian rice exporter Raju Dada expressed similar views. He estimated, 70,000 tons of rice are awaiting shipment for which L/Cs have been opened.
Importers viewed that the sudden ban on rice export by the Indian government was intended to further raise the price in view of the stiff rise of the demand from Bangladesh.