Unique-Bangladesh, India Finalising Initial Bilateral Rice Deal in 3 Decades – Sources | Investing Information

By Ruma Paul and Rajendra Jadhav

DHAKA/MUMBAI (Reuters) – Bangladesh is finalising a obtain of 150,000 tonnes of rice from India’s NAFED, the New Delhi-based condition company told Reuters, in what would be the very first these types of bilateral deal in a few yrs immediately after floods in Bangladesh despatched regional costs to a report large.

India, the world’s major rice exporter, is providing a steep price reduction to provides from rivals Thailand and Vietnam to slice its surplus immediately after a bumper harvest.

“We are negotiating with Bangladesh,” explained a spokesman for NAFED (the Nationwide Agricultural Cooperative Marketing Federation of India Ltd). “NAFED is in a place to offer up to 500,000 tonnes rice to Bangladesh.”

A senior official with Bangladesh’s food stuff ministry mentioned they could acquire 100,000 tonnes of parboiled rice and 50,000 tonnes of white rice beneath a federal government-to-governing administration offer.

India could sell parboiled rice at all over $407 and white rice at all over $417 for every tonne on a price tag, insurance policies and freight (CIF) liner out basis, an Indian governing administration supply claimed. The fees are about a third less expensive than individuals from Thailand and Vietnam.

The full cargo is possible to be produced in the initial quarter of future yr from the Haldia port in India’s jap condition of West Bengal, which borders Bangladesh, the Indian govt formal additional.

Each the Indian and Bangladeshi authorities officials declined to be named as specifics are nonetheless becoming worked out.

Reps for the trade and food stuff ministries of India and Bangladesh did not straight away reply to requests for remark.

Bangladesh, the world’s 3rd-biggest rice producer with an output of almost 35 million tonnes a year, depends on imports from time to time to cope with shortages induced by pure disasters this sort of as floods or drought.

Its condition grains agency issued its 1st rice purchase tender in 3 many years in November to increase regional supplies. The state of extra than 160 million people today could import as substantially as 500,000 tonnes of rice in the calendar year to June.

“Bilateral promotions will accelerate India’s rice exports,” claimed B.V. Krishna Rao, president of the Indian Rice Exporters’ Association. “The govt need to test to seal a lot more this sort of discounts as we have enough surplus for exports.”

(Reporting by Ruma Paul and Rajendra Jadhav Editing by Pravin Char)

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