Rice prices jump by 14pc in India as Bangladesh removes import duty

Rice prices in India have jumped by up to 14 per cent in just two days as Bangladesh’s withdrawal of 20 per cent import duty on the staple has caused a temporary imbalance in domestic demand and supply in India.

Recently, Bangladesh decided to allow duty-free import of 500,000 tonnes of rice to stabilise its domestic market.

Following the decision, Indian news portals said retail prices started climbing sharply.

“The Swarna variety increased from Rs 34 to Rs 39 per kg, Miniket from Rs 49 to Rs 55, Ratna from Rs 36–37 to Rs 41–42, and Sona Masoori from Rs 52 to Rs 56,” the reports said.

The Indian traders told the media that they had advance information that Bangladesh government was planning to withdraw its 20 per cent import duty on rice, prompting them to stock up near the Benapole-Petrapole border.