NEW DELHI: India has allowed 500,000 tonnes of rice exports under a diplomatic deal to neighbouring Bangladesh, which is looking to boost its reserves. “We have intimated the Bangladesh government to purchase rice in the open market (in India),” Junior Farm Minister K V Thomas told reporters on Monday.
India, the world’s second largest rice producer, does not permit free sale of the grain but sends limited stocks overseas to friendly countries. It is not keen on exporting rice and wheat in the near term because the country aims to build a larger grains buffer, a senior government official had said last week.
“This permission will help Bangladesh purchase rice from India by floating tenders,” a Delhi-based rice trader said. “It is too small a quantity to influence global trade.” In August, the Indian government had allowed exports of 300,000 tonnes of non-basmati rice and 200,000 tonnes of wheat to Bangladesh, as good rains and higher planting of the crop boosted crop prospects.
Bangladesh, the world’s fourth-biggest rice grower, produces more than 30 million tonnes of rice a year but often imports large volumes to overcome shortages resulting from natural disasters like floods and drought that hit the south Asian country almost every year.
