Bangladesh removes 20% duty on rice imports; Indian exporters seize opportunity, fueling domestic price spike.
Rice prices in India have soared by up to 14% in just two days as traders rush exports to Bangladesh, following Dhaka’s decision to allow duty-free import of 500,000 tonnes of rice. The sudden move has tightened domestic supply, causing a jump in retail prices across popular rice varieties, according to an ET report, reported timesofindia.indiatimes.com.
Prices of key varieties have surged: Swarna rose from ₹34 to ₹39 per kg, Miniket from ₹49 to ₹55, Ratna from ₹36–37 to ₹41–42, and Sona Masoori from ₹52 to ₹56.
Bangladesh officially announced the removal of its 20% import duty on Wednesday, triggering immediate shipments from India, particularly via the Petrapole-Benapole border.
Traders in West Bengal, Uttar Pradesh, and southern states admitted they had advance knowledge of the duty cut and had pre-stocked near the border to meet demand.
Suraj Agarwal, CEO of RiceVilla, said trucks began moving to Bangladesh the same night the announcement was made. “Logistically and cost-wise, it is more competitive to export through the Petrapole-Benapole border,” he added, noting that millers from across India are tapping this route.
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Bangladesh’s move aims to stabilise domestic rice prices amid inflation, after witnessing a 16% rise in FY25 and importing 13 lakh tonnes to meet consumption needs
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Despite the export surge, Indian rice stocks remain comfortable. Andhra Pradesh miller CK Rao confirmed that his shipments had already left for Bangladesh
Keshab Kumar Halder of Halder Venture Limited said the orders would “help the Indian market recover from the recent downturn by creating demand and partially offsetting the global price dip,” even as international prices remain subdued due to surplus supply.
