The New Nation - Internet Edition

THE rice import deals with India has been far from being smooth. Bangladesh has been consistent in trade deals with close neighbours including India. But India's handling of the same of late has been a cause of concern. The frequent changes of decisions in respect of rice export to Bangladesh is the case in point. Prior to the super cyclone Sidr in November 2007, India halted export of rice to this country. Then came resumption of export after consecutive natural calamities left Bangladesh with crop failure and serious food shortage. India then abruptly decided to increase the export price from US$425 per ton to US$500. At last, the big neighbour agreed to export five lakh tonnes of rice at US$399 a tonne at the state level. Very recently rice export to Bangladesh by private exporters has again been banned.

The result of such inconsistency in deals had serious impacts on the internal markets of the close neighbour. Rice export was stopped and then export prices were increased at a time when the food supply situation in Bangladesh was very shaky. As an immediate effect of India's decisions, rumours about likely scarcity of food grains began floating in the air. The increase of export price by India adversely affected the price situation and added fuel to the fire. The prices of rice skyrocketed at a speed that had never been experienced before. It created a sense of food insecurity and gave rise to panic buying. The latest ban on export of coarse rice is likely to have similar impacts.

As close neighbours, Bangladesh and India share historical and cultural bonds. It is naturally expected that India will re-examine its trade deals. Bangladesh should take up the matter with all seriousness. India is free to take decision regarding export of rice to any country. But frequent changes of decisions can only cause great disadvantage to a trade partner.