Bangladesh requests guaranteed supplies of five food items from India
- In Reports
- 06:33 PM, Mar 27, 2024
- Myind Staff
Bangladesh has approached India for guaranteed annual supplies of five food commodities, including rice and wheat, to manage fluctuations in market prices and shortages, according to sources familiar with the situation.
According to sources speaking on condition of anonymity, discussions have taken place between the two countries regarding this matter. Dhaka has requested New Delhi to sign a MoU on fixed quotas for five commodities, including onions, ginger, and garlic, during these discussions.
However, the discussions stated that the two sides have not yet reached common ground due to sensitivities linked to the export of such commodities.
India banned wheat exports in May 2022 and non-basmati rice exports in July 2023 to fulfil domestic needs. The government also prohibited onion exports for approximately four months last December. However, India has supplied rice, wheat, and onions to neighbouring countries such as Afghanistan, Bangladesh, Bhutan, Nepal, and Sri Lanka, as well as key partners including the UAE, Indonesia, and Vietnam, on a case-by-case basis.
Before the Islamic month of Ramzan, the government permitted the export of 50,000 tonnes of onions to Bangladesh and 14,400 tonnes to the UAE in early March in response to diplomatic requests. These were the first exports after the ban was enforced.
According to sources, while all the supplies have not yet reached Bangladesh through the National Cooperative Exports Ltd, the Indian government's decision immediately cooled prices in Bangladeshi markets, which had sharply increased since the previous year.
The initiative to establish fixed quotas for these five commodities aims to provide protection against export bans and ensure uninterrupted and guaranteed supplies every year, the source added.
There was no official response from India regarding Bangladesh's request for additional supplies of sugar and onions, which was discussed during a meeting between Bangladesh Foreign Minister Hasan Mahmud and Indian Commerce Minister Piyush Goyal in January. Mahmud had highlighted Bangladesh's focus on reducing the prices of essential commodities.
Bangladesh's rice imports from India rose from $9.7 billion to $11.1 billion in 2022-23, while wheat imports decreased from $2.1 billion to $1.5 billion during the same period. Onion imports increased from $460.5 million to $561.8 million, whereas ginger imports declined from $93 million to $35.9 million. Garlic imports surged from $2.9 million to $11.3 million in 2022-23.
In 2019, India's ban on onion exports significantly affected Bangladesh, prompting Prime Minister Sheikh Hasina to urge India to provide advance notice of such bans. Bangladesh remains one of India's trusted partners in the region, with a focus on enhancing connectivity for trade, energy, and tourism. Hasina's recent electoral victory has further strengthened bilateral relations.
Image source: Financial Expres
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