The New Nation - Internet Edition

Staff Reporter

Import of rice from India will cost less than US$ 500 per ton, said Indian High Commissioner in Dhaka Pinak Ranjan Chakravarty yesterday.

"Bangladesh can import rice from India at less than US$500 per ton. The Indian government has fixed export prices of rice at US$500 per ton which is not applicable to Bangladesh," he told reporters after attending the monthly luncheon meeting of Foreign Investors Chamber of Commerce and Industry (FICCI) at Sonargaon Hotel in the city.

"But, Bangladesh will have to import rice through the designated state-controlled agencies, not through the private parties, because the private parties drive up prices once it is opened to them. It's not only in our interest, but also in your interest," he said.

The Indian High Commissioner's comment came at a time when the Bangladesh government made significant progress in importing rice from different countries in the wake of sudden rice price hike by the Indian government as well as procuring 5 lakh metric tons of rice through the World Food Programme.

During his visit to Bangladesh after the Cyclone Sidr affected the country's southern districts, Indian foreign minister Pranab Mukherjee announced that India would sell 5 lakh metric tones of rice to Bangladesh at lower than international market prices. But, suddenly the Indian government fixed the minimum export prices of rice at US$500 per ton, which resulted in abnormal price hike of rice in local markets.

It is learnt that the Ministry of Food will hold a meeting with the Indian High Commission officials in Dhaka today (Monday) to discuss about import of 5 lakh metric tones of rice from India.

Addressing the FICCI luncheon meeting, the Indian High Commissioner called for opening up more trade routes between Bangladesh and India to promote bilateral trade and economic development.

"We need to move forward with proposals for improving connectivity - road, rail, airways, shipping and inland waterways," he said.

FICCI president Wali Bhuiyan welcomed the foreign investors doing business in Bangladesh at the meeting.

Chakravarty said India is ready to move at a faster pace to strengthen connectivity and expects similar response from Bangladesh.

He also stressed the need for focussing more on promoting mutual investments and technology collaborations as foreign investors seek fair, transparent process and predictable policy regime.

"I'm aware the government of Bangladesh is committed to facilitate investments in Bangladesh," the Indian High Commissioner said, adding that there were significant proposals from Indian industrial giants to invest in the country.

He said there were other small and medium sized Indian firms, who would be interested in investing in Bangladesh that hold considerable potential for increasing exports to India and thus addressing the trade imbalance.

In 2006-07, Bangladesh imported goods worth over US$ 2.5 billion as compared to its exports of only US$ 290 million.

Chakravarty said India recognised the need for addressing the trade imbalance and the perceived non-tariff barriers, and both sides were looking at ways and means to address both.

Replying to a question whether cooperation in real term is possible with mistrust between the peoples of the two countries, he said the mistrust would not be removed "unless we start working together."

"We're ready to join hand and to reconnect… it's your country's political leadership to take the decision in this regard," he said, adding that one cannot do it overnight.

Replying to another question, the Indian envoy said the procedure to export 8 million pieces of apparel items from Bangladesh to India at reduced tariff is almost done and only some bureaucratic process was pending. It could take place after the next meeting of the Indian cabinet.

He told a questioner that India has a plan to reduce its negative list of products from over 700 items to 200, but readymade garments would still be in the list.