Bangladesh's duty-free rice import fuels sharp rise in Indian prices
Rice prices in India have surged by up to 14% within just two days after Bangladesh scrapped its 20% import duty on the grain, triggering a rush of shipments across the border.
On Wednesday, Dhaka announced that it would allow duty-free imports of 500,000 tonnes of rice in an attempt to cool soaring food prices at home. Rice costs in Bangladesh have already climbed by around 16% in the current financial year, putting pressure on consumers amid stubbornly high inflation. The country had imported 1.3 million tonnes of rice last year to supplement domestic production, according to The Times of India.
Officials in Dhaka said the duty waiver was a temporary step aimed at stabilizing the market and preventing further strain on low- and middle-income households. Importers confirmed that cargoes are already being moved through the Petrapole-Benapole land port—the busiest trade corridor between the two countries—suggesting supplies will accelerate in the coming weeks.
The announcement immediately pushed up retail prices in India. The Swarna variety jumped 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, Indian media reports showed. Traders admitted they had anticipated Bangladesh’s policy shift and began stockpiling rice near the border in advance, further tightening local supply and contributing to the price spike.
Analysts warn that if Bangladesh expands its import quota beyond 500,000 tonnes, Indian rice prices could rise even higher, affecting consumers across states like West Bengal, Odisha, and Andhra Pradesh, where rice is a staple. The sudden increase is also expected to put pressure on India’s inflation outlook, with food prices already being closely monitored by policymakers ahead of the festive season.
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