Alleged smuggling of rice and sugar from India to Bangladesh





 India exports 40% of the world's rice demand.  India exports rice to about 132 countries.  But last July 20, 2023, the Indian government imposed a ban on the export of rice.  As India is the world's largest exporter of rice, countries importing rice from India fear future rice shortages and price hikes due to this ban.


On July 20, 2023, India imposed a ban on rice exports.  The ban has been imposed only on non-basmati rice.  Since non-basmati rice accounts for more than 80% of the total rice from India, there is a fear of rice shortage in several countries including USA, Europe, Bangladesh.  Earlier India had also banned the export of broken rice and sugar.  As a result of the tsar, the prices of these products increased in various countries.  Currently, due to the ban on rice, the world market is in turmoil.  Many organizations and experts believe that this will lead to severe food shortages in some countries.  India's Commerce Minister Janay said that paddy cultivation in India has decreased mainly due to weather conditions.  Most of India's rice is grown in Andhra Pradesh, Punjab, Haryana, West Bengal.  But floods in North India this season have caused massive damage to paddy cultivation.  And paddy cultivation has been lower than in other years due to insufficient rainfall expected in South India due to late monsoon.  As a result, the price of rice within India started to rise.  Government of India has taken this initiative to curb this price rise.


India is the main and major importing country of Bangladesh.  India banned exports of broken rice and sugar last year.  Recently, the Indian government has also banned the export of non-basmati rice.  The price of rice in Bangladesh is threatening to increase.  However, the Bangladesh government has said that there is enough rice stock in Bangladesh.  Also, the production of paddy has been very good this year.  There is no news of increase in the price of rice in the markets of Bangladesh.  Observing the market, we can see that rice is stocked in all the places from small shops to rice mills.  Small businessmen said that there is no fear of rice crisis or price increase, but if some big companies and mill owners do not manipulate then the price of rice will not increase. 

Rice and sugar smuggling to Bangladesh from Indian border

Last year, the Indian government imposed a ban on the export of broken rice and sugar.  The Indian government has also stopped the export of non-basmati rice this year.  India's rice and sugar are still being smuggled into Bangladesh despite stopping exports.  The central government is concerned about this smuggling. Export of sugar from India is banned till October 30 in 2023.  Meanwhile, the Bangladesh government discussed sugar exports with India, and applied for 1 million tons of sugar.  But the Indian government rejected that application.  But smuggled sugar from India is reaching Bangladesh, and the government's concern about it is increasing.  The government imposed a ban on the export of sugar to prevent the shortage of sugar and broken rice in the Indian market and the increase in prices.  But despite the ban, it is alleged that it is being smuggled into Bangladesh.  The Indian government is repeatedly negotiating with the BSF to stop this smuggling.  India's China production during October to September 2022-23 financial year was around 33 million tonnes and domestic sugar demand was 5 million tonnes during that period.  According to experts, Bangladesh has a maximum of three to four million four tonnes of which is smuggled so there is very little chance of price increase in India.  However, since March 2023, sugar prices have increased by around 6.5%.  And broken rice prices increased by 13.6%.  Recently, the central government issued a notification banning the export of non-basmati rice.  India is the world's largest rice exporter.  India accounts for 40 percent of the world's total rice exports.  In this climate, 5.69 million tonnes of rice were exported from India during April-June.  In June-July, rice exports increased to 6.26 million metric tons.  Based on this increase in domestic prices, the Indian government stopped the export of non-basmati rice.  Even after the ban, it is alleged that these goods are crossing the border in the hands of smugglers.


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