The New Nation - Internet Edition

Staff Reporter

Import of rice at private level remains suspended following the restriction imposed by the Indian government suddenly on export of non-Basmati rice.

Hundreds of rice-laden trucks have now remained stranded at the Indian side of the landports with Bangladesh. Bangladeshi importers said the sudden decision by India halted import of 100,000 tonnes of rice through the private sector.

Food and Disaster Management Adviser AMM Shawkat Ali yesterday said the government has nothing to do as the restriction applies to the trading arrangement under private sector. "The Bangladesh government will not respond to the Indian government decision," he said.

He also termed India's ban on rice export their "internal matter."

However, the Adviser said the import of 5 lakh tones of rice at government level would not be affected by the India's latest decision as the price of per metric tonne of rice was fixed at US$399 by both the Bangladesh and Indian sides.

The customs commissioner of Kolkata Thursday announced the export ban in an order to the Indian exporters.

The Indian traders said that the customs office made the order as it was asked by the Indian central government to do so. The Indian businessmen then informed Bangladesh importers about the government's decision.

On the other hand, the Indian High Commission in Dhaka has said that the export restriction on non-basmati rice notified on February 7 is applicable to all countries, and is not specific to Bangladesh. The wholesale rice traders in Chittagong yesterday expressed their deep concern at imposition of restriction on export by the Indian government.

They said that the India's restriction on export of rice might lead to yet another rice crisis in the country.

The traders also called upon the government to import rice from other countries to meet the growing demand of rice in Bangladesh market.

Our Jessore Correspondent reported from Benapole yesterday that hundreds of trucks with rice imported by the local importers from India have remained stranded at Petrapole. These trucks have become unable to enter Bangladesh, as the Indian customs authorities are not giving them permission to enter Bangladesh.

Our Dinajpur Correspondent reported that hundreds of rice-laden trucks remained stranded at Hili landport over the last several days. These rice have been imported by the Bangladeshi importers at US$500 per tonne. But, the Indian customs authorities have not been allowing these trucks to enter Bangladesh following the restriction on export imposed by the Indian government.

Local rice importers said they were facing financial losses because of the sudden decision and some 300 rice trucks ready to enter Bangladesh were left stranded on the Indian side of the land port.

They said they would have to incur colossal losses due to the delay in releasing the consignments of rice by the Indian customs authorities.

The importers said they would have no alternative, but to sell the imported rice at higher prices in local markets to meet the losses. It will result it yet another instability in the local rice markets.

On the other hand, prices of different varieties of coarse rice in local markets have gone up by Tk 70 per maund following the restriction of private level export by the Indian government on Thursday.

Importers viewed that the sudden ban on rice export by Indian government was intended to further raise the price creating an instable and volatile situation in the rice markets of Bangladesh.

Internal rice procurement price in West Bengal is Rs 11.30 when the open market price is around Rs 13 per kilogram, equivalent to Tk 22.88 (official rate).

Finding the demand from Bangladesh, India has raised export price by about US$ 100 per ton over the year. "They want to further jack up the price at the cost of our difficulty," said an importer.

Meanwhile, overlooking India's ban on rice export to Bangladesh as their internal matter, Food and Disaster Management Adviser AMM Shawkat Ali yesterday said the government has nothing to do as the restriction applies to the trading arrangement under private sector.

"India imposed the ban on export of rice by private exporters, so we don't have authority to take decision in this regard. But, this would not hamper the import of 5 lakh metric tonnes of rice from India as pledged by the Indian government after Sidr attack," he said while talking to journalists at his ministry yesterday.

Besides those 5 lakh metric tonnes, the government has given order for importing more 2.10 lakh metric tones rice in an alternative way to help make stable the market, he informed the media.

Adviser Shawkat assured that the government would talk to the Indian authority so that the restriction does not leave any impact on those importers who have opened L/Cs earlier.

He mentioned that Indian exporters also reacted to the ban, which, meanwhile, reportedly caused consignments of rice to have been stranded on the Indian side.

Replying to a query over the soaring price of rice on the domestic market, the Adviser of the caretaker government admitted that the price hike would cause a bit of problem to the middle-class people.

Poorer sections are getting rice under OMS, VGF and other interventions in the wake of the dearth.

"The government is monitoring the market to control prices of essential commodities. But, no timeframe could be given in this regard," Shawkat said.

The Indian government has recently slapped a ban on rice export to Bangladesh by private exporters. The brake was pressed last Thursday as the millers refused to sell 50 percent of their product to the government.

Meanwhile, India clarified that the export restriction is applicable to all countries and not specifically to Bangladesh

Referring to the press reports on export restriction imposed by India

on non-basmati rice, a press release from the Indian High Commission in Dhaka last night said: "Some of these reports suggest that the restriction is applicable to Bangladesh only. The export restriction on non-basmati rice notified on February 7 is applicable to all countries, and is not specific to Bangladesh."

Regarding waiver of ban on export of rice up to 5 lakh metric tonnes to Bangladesh, announced during the visit of the External Affairs Minister of India to Bangladesh on December 1, 2007, the release said, "It is clarified that the notification, dated February 7, 2008 will not affect procurement of 5 lakh metric tonnes of rice by the Bangladesh government from designated Indian entities".

"The process of procurement of 5 lakh metric tones of rice is underway," it added.