Bangladesh has approached India to source at least 0.5 million tonnes (mt) of parboiled rice on a government-to-government (G2G) basis for distribution through ration shops.

India’s High Commissioner to Bangladesh has been approached by the Sheikh Hasina Wajed government for the supply, even as Dhaka has floated two tenders of 50,000 tonnes each to import parboiled rice, trade sources said.

The tenders floated on December 6 and 12 will close on December 21 and December 27, respectively. 

Foreign visits 

Bangladesh has approached India after a delegation including the Food Secretary and Director-General of the Food Directorate, from Dhaka visited Vietnam, Thailand and Cambodia last month to scout for supplies.

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According to the sources, Bangladesh has turned to India as it has not been able to find parboiled rice at a competitive rate from these three countries. The sources said one of the four agencies between the NAFED, NCCF, Kendriya Bhandar and Kribhco Agri could be shipping the rice on G2G basis to Bangladesh.

Data from Thailand Rice Exporters Association show that parboiled rice is currently offered at $468 a tonne by Thailand, while Pakistan’s offers are between $453 and $457. Indian parboiled rice is offered at $373 and $377. 

Thailand’s offer price has increased by $5-6 a tonne over the past fortnight, while Pakistan’s rate has gone by marginally. Indian prices, on the other hand, are down by $1. 

Crop weather-hit

Though the Wajed government says it has ample rice stocks, it has begin importing rice on G2G and through private trade to prevent any crisis. In Bangladesh, rice prices have spiked over the past few weeks since its paddy crop has been affected by weather, initially due to floods and then dry weather. 

India may not have any problem in supplying parboiled rice to Bangladesh since its exports have not been curbed. In its order curbing rice exports from September 9, the Centre has banned shipments of fully broken rice, while imposing 20 per cent export duty on non-basmati white rice. 

Parboiled and Basmati rice have been exempt from any curbs. However, rice prices have been rising in the country on fears that the kharif paddy crop may be lower as key growing regions in West Bengal, eastern Uttar Pradesh, Bihar, Jharkhand and  Odisha were affected.

Despite the curbs on exports and 20 per cent export duty, Indian rice is still the most competitive in the global market. 

Domestic price hike

Minister of Agriculture and Farmers’ Welfare Narendra Singh Tomar told the Rajya Sabha on December 9 that rice prices have increased 8 per cent year-to-date in the domestic market on fears of lower production in the kharif season. 

According to the Agriculture Ministry first advance estimate, rice production is pegged at 104.99 million tonnes (mt) against 111.76 mt last year.  

According to Agricultural and Processed Food Exports Development Authority (APEDA), non-basmati rice exports in the first half increased to 8.96 mt against 8.23 mt a year ago with the shipments fetching $3.03 billion against $2.97 billion.

The Centre imposed curbs on rice exports to manage a tight food situation with the cereal’s stocks dropping to their lowest since 2018 at 16.6 mt, besides 19.65 mt of milled paddy (13.5 mt of rice) as of November 1.  

Last fiscal, India shipped out a record 17.26 mt of non-basmati rice fetching ₹45,649.74 crore against 13.08 mt earning ₹35,448.34 crore in 2020-21.

Over the last couple of years, India’s rice exports have been driven by record production. Last crop year (July 2021-June 2022), India produced a record 130.29 mt of rice.  

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