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Dhaka seeks 6.2m tonnes of import quota from Delhi

The request for annual supply comprises seven key items


REZAUL KARIM | Monday, 21 August 2023



Dhaka has submitted a list to New Delhi seeking an annual import quota of around 6.2 million tonnes for seven essential commodities: rice, wheat, onion, sugar, lentils, garlic and ginger, according to sources.
The breakdown includes 2.6 million tonnes of wheat, 1.55 million tonnes of rice, 1.0 million tonnes of sugar, 0.8 million tonnes of onions, 0.1 million tonnes of lentils, 70,000 tonnes of garlic and 50,000 tonnes of ginger, they said.
As per the proposal, the quota request includes a government-level import of 0.5-0.8 million tonnes of rice, 0.5-0.7 million tonnes of wheat, 0.1 million tonnes of lentils, 50,000 tonnes of sugar and 20,000 tonnes of onion, with the remaining quantity designated for the private sector.
The revised demand proposal was sent to Indian authorities through the foreign ministry on Sunday.
Earlier, in December 2022, Bangladesh put forth a quota proposal and later revised the annual import figures for six consumer commodities from India.
These products will be sourced at globally competitive prices, based on both international and domestic demand, said a senior Bangladeshi official.
A virtual bilateral meeting was held between Bangladesh and India on Sunday to settle the food import quota. Senior Commerce Secretary Tapan Kanti Ghosh led the Bangladesh side in the meeting.
During the meeting, an agreement was reached to ink a memorandum of understanding (MoU) encompassing all necessary aspects related to the food quota.
Senior Commerce Secretary Tapan Kanti Ghosh said, "We expect to settle the food quota issue as early as possible or before the upcoming Group of 20 (G20) summit."
He added that an MoU is expected to be signed regarding the quota between Bangladesh and India.
Compared to the February 2023 proposal, the commerce ministry has slightly increased its recent wish list for the annual import of these consumer commodities from India.
In a previous Indo-Bangla commerce minister-level meeting in December 2022, Bangladesh suggested quotas for 4.5 million tonnes of wheat, 2.0 million tonnes of rice, 1.5 million tonnes of sugar, 0.7 million tonnes of onions, 0.125 million tonnes of ginger, 30,000 tonnes of lentils and 10,000 tonnes of garlic.
Following the proposal, Delhi requested Dhaka to rationalise its demand. Subsequently, the commerce ministry in mid-January sat with officials and stakeholders to chart the course of action for reviewing the quota proposal and facilitating imports from India.
In the meeting, the ministry formed a five-member high-powered committee tasked with formulating a revised annual import quota. The committee prepared the report based on the country's comprehensive 10-year demand, production, import and supply data for these items.
Based on the report, Bangladesh submitted a revised proposal in February, suggesting import quotas of 2.5 million tonnes of wheat, 1.5 million tonnes of rice, 1.0 million tonnes of sugar, 0.6 million tonnes of onions, 0.1 million tonnes of ginger and 50,000 tonnes of garlic.
The government will annually determine the food quota proposal for Indian commodities in Bangladesh, considering both domestic demand and production.
This strategy is aimed at bolstering the country's food security, especially in light of potential food crises stemming from the Russia-Ukraine conflict and the ongoing challenges posed by Covid-19.
Bangladesh consistently imports a significant volume of key consumer items from neighbouring India each year.
For instance, over 0.6 million tonnes of lentils are required to fulfil the nation's annual demand. Of this lentil volume, about 0.4 million tonnes must be imported, while around 0.2 million tonnes are produced locally.
Besides, the country's annual onion demand exceeds 2.5 million tonnes, with 0.6-0.7 million tonnes necessitating import, with more than 90 per cent of these imports originating from India.
Bangladesh imports 6.0 million tonnes of wheat annually to satisfy demand, and a significant portion of this necessity is sourced from neighbouring India, said a senior official.
Currently, Delhi included export quotas for essential goods to Nepal and Bhutan in India's national budget last March.

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