India Rice Prices Surge 14% as Exports to Bangladesh Spike

According to the news, rice prices in India have risen by up to 14% over the last two days, with traders rushing to export to the more lucrative Bangladeshi market. This surge in exports has been triggered by Bangladesh's decision to temporarily remove its 20% import duty on rice, allowing the import of 500,000 tonnes of the staple.

Traders from various regions of India, including West Bengal, Uttar Pradesh, and southern states, had prior information about Bangladesh's plan to remove the import duty. Anticipating this move, they had kept large stocks of rice ready at warehouses near the Petrapole-Benapole border, the main land route between the two countries.

As a result, the sudden spike in exports has led to a temporary imbalance in India's domestic demand and supply, causing prices of popular rice varieties like Swarna, Miniket, Ratna, and Sona Masoori to rise sharply. For instance, the Swarna variety now costs Rs 39 per kg, up from Rs 34 earlier, while the Miniket variety has gone up to Rs 55 per kg from Rs 49.

Traders and rice exporters believe this surge in demand from Bangladesh will help the Indian market recover from the recent downturn in global rice prices. However, the situation is expected to be temporary, as India has healthy stock levels both with the government and in private warehouses.