Rice prices in India spike as exports to Bangladesh surge after duty cut

The sudden spike, reported by ET, comes after Dhaka officially removed its 20% import duty on Wednesday to stabilise domestic prices amid high inflation, triggering an immediate export wave.

Traders from West Bengal, Uttar Pradesh, and southern India had anticipated the decision, stocking up near the Petrapole-Benapole border in advance, the report said.

Prices of key varieties have jumped sharply — Swarna from ₹34 to ₹39 per kg, Miniket from ₹49 to ₹55, Ratna from ₹36–37 to ₹41–42, and Sona Masoori from ₹52 to ₹56, according to the report.

Suraj Agarwal, CEO of RiceVilla, said the announcement by Bangladesh’s National Revenue Board came on Wednesday afternoon, with trucks from India rolling out that very night.

“Logistically and cost-wise it is more competitive to export rice through the Petrapole-Benapole border,” he noted, adding that millers from Uttar Pradesh and the south were using this route.

Bangladesh, which saw a 16% rice price rise in FY25 and imported 13 lakh tonnes to meet demand, hopes the duty cut will ease domestic prices.

Despite the export surge, India’s rice stocks remain healthy.

The report said that CK Rao, a rice miller from Andhra Pradesh, said his trucks left for Bangladesh on Thursday morning.

Keshab Kumar Halder of Halder Venture Limited told ET that while global rice prices had dipped due to surplus supply, the fresh Bangladeshi demand would “help the Indian market recover from the recent downturn by creating demand and partially offsetting the global price dip.”