Asia: Bangladesh to import rice from India
Bangladesh lowers import duty on rice up to 25%.
India continues to retain its position as the top rice exporting country as Bangladesh Government had previously announced 3 tenders and market observers have revealed that Government to Government (G2G) deals may be announced in the upcoming month. Bangladesh’s government plans to buy 100,000 MTS of parboiled rice and 50,000 MTS of white rice as per a senior official in Bangladesh’s food ministry. An Indian government source said that India could offer parboiled rice at around $407 per MTS and white rice at roughly $417 per MTS on a cost, insurance, and freight (CIF) basis. The rice prices are about a third lower than the other rice exporting countries Thailand and Vietnam. The Indian government official also added that the total rice shipment is expected to be rendered in the first quarter of 2021 from the Haldia port in India’s eastern state of West Bengal, which borders the rice buyer Bangladesh.
Bangladesh's food minister said that Bangladesh will lower the import duty on rice to boost stockpiles and maintain economic viability for purchases in the domestic segment. Food Minister Sadhan Chandra Majumdar informed the reporters that the import duty on rice will be reduced to 25% from 62.5%. Bangladesh is the world’s third-biggest rice producer, has emerged as one of the highest importers of rice recently due to depleted rice supplies and high local rice prices after recurring flooding damaged its rice harvest.
India’s parboiled rice market saw muted activities for the previous week as the crisis in the container segment strengthened. At Kakinada, rice traders indicated that bottlenecks continued delaying the process of loading in bulk. The demand for Indian rice export continues and is estimated to keep a positive move for 2021. Numerous issues may limit the rice trade however market modifications and improvements will continue given the rice demand is seen to be robust. While Indian white rice market witnessed a volatile outcome in the previous week as sentiments continued mixed. While some rice exporters hint at the possibility of low arrival for re-milled rice. Other rice exporters indicated low demand which would keep the rice prices stable.
Thailand's rice export prices for 5 percent broken rice increased to $516-$520 per MTS from the previous week $500-$519 per MTS. One rice trader said lower rice supply has backed rice prices in the local market. Rice demand stayed subdued as the market speculated rice buying activity would occur from Japan over the coming weeks.
Vietnam's rice export prices for 5 percent broken white rice were unchanged at $500 per MTS. As per one rice exporter Vietnam's total rice exports this 2020 will be 6 to 6.2 Mn MTS, lower than the earlier goal of 6.5 Mn MTS. One rice trader said that rice export is terribly slow at this time as local rice supplies are getting low adding that paddy purchases from Cambodia may possibly lessen the shortage. Rice demand is likely to increase over the coming days and rice traders anticipate seeing a great year for rice exports in 2021, with great demand from the top rice importing country the Philippines.
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