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India allows rice export at previous rate

Gopf looks for more rice sources

Star Report
The Indian customs authorities yesterday started to allow consignments of rice export to Bangladesh at previous rate of S 425 per ton saying that the old rate would be applicable only to the Letters of Credit (LC) opened before December 27.
The decision is seen as an outcome of persistent pressure from rice traders, reports our correspondent in Benapole.
Meanwhile, Food Adviser Tapan Chowdhury yesterday said the decision has already been made to import one lakh ton of rice from Thailand and import of another 75,000 tons from the same country is under active consideration. He also said die government is looking for alternative source of rice import as India raised the price sharply, repons UN’B.
At Benapole land port, a total of 7,580 tons of rice, under LCs opened prior to December 27, were allowed to enter Bangladesh yesterday since die decision was taken following a meeting between the Indian customs authorities and the
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exporters in the morning.
The meeting also decided that the consignments of rice under the LCs opened after December 27 would be exported to Bangladesh at the rate of $ 500 a ton, said Nirmal Shikari, Indian rice exporter.
On December 27, the Indian government decided to raise the export price of rice from S 425 to S 500 per ton.
Following the government decision, the Indian customs authorities on December 30 stopped allowing consignments of rice below $ 500 per ton through Petrapole land port in India, causing tailbacks of trucks loaded with rice consignments to Bangladesh.
Earlier on Monday, rice prices in Bangladesh saw a sharp rise as consignments of rice from India reached the Benapole land port under an increased rate of $ 505 a ton.
The price of coarse rice hit an all-time high on Monday with Tk 30 a kg in the capital and elsewhere in the country.
UNB adds: Asked if the government would buy rice from India at the enhanced price, Food Adviser Tapan Chowdhury yesterday told reporters, "We are considering rice import from other countries like Thailand, Myanmar and Pakistan. We are also examining the quantum to meet the domestic demand."
India on December 27 jacked up the minimum export price of rice at $500 per ton, third time in less than a year, from $ 315 a ton in February last year.
In November, India withdrew the ban on rice export to Bangladesh in view of the difficulties caused by the devastating cyclone. But later, it imposed a number of conditions and finally raised the minimum price to $ 500 on December 27.
Tapan Chowdhury said the government has taken a move to change the rice import policy to facilitate import from other coun-
He said India had promised to export 5 lakh tons to Bangladesh. "We hope they will sell to us at the previous price," he added.
He said traders favour import from India because of low transport cost, but they will now look for alternative sources.