Indian rice prices soar after Bangladesh drops import duty
Bangladesh just dropped its 20% import duty on 500,000 tons of rice, and it's already making waves in India.
In just two days, domestic rice prices shot up by as much as 14%—all because traders near the Petrapole border had stocks ready at their warehouses in anticipation of the duty removal, tightening what's available at home.
Prices of popular rice varieties in India
Popular types like Swarna jumped 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.
Each of these is a staple in different parts of India—so the impact is being felt across the country.
Bangladesh's food inflation
Bangladesh made this move to help cool off rising food inflation—they've seen rice prices climb 16% this year.
By importing more affordable Indian rice, they're hoping to keep things stable for their people.
India could export to Bangladesh
With plenty of surplus and easy land routes via Petrapole, India could export up to 500,000 tons of rice to Bangladesh.
This helps Indian states by keeping local demand strong even as global prices fall—but it also means higher prices at home for now.