October 29, 2010

India to export 500,000-tonne grains to Bangladesh

The government of India said that it will soon export 500,000 tonnes of rice and wheat to Bangladesh despite a ban on outward shipments of the food grains.

"India will be exporting three lakh (300,000) tonnes of par-boiled rice and two lakh tonne of wheat to Bangladesh...PSUs (state trading firms) have been directed to do so expeditiously," said Commerce and Industry Minister Anand Sharma. He said the exports would happen "soon".

The decision to export the rice and wheat was taken in August, an official said. The Director General of Foreign Trade Anup K Pujari has been asked to monitor the exports. Bangladesh imports about one million tonnes of rice and wheat annually.

The visiting minister had yesterday said that Bangladesh wants an agreement with India for import of wheat and rice every year.

There has been a ban on export of wheat and non-basmati rice since October 2007 and April 2008, respectively, to ensure availability of the grain in the domestic market and check the price rise. But the ban has been relaxed from time-to-time on diplomatic grounds.

"We consider India not only as neighbour but as a brother and dear friend," he said adding that several bottlenecks in trade between the two countries have been resolved.

The two countries also signed agreements to strengthen economic ties.

"We have agreed to strengthen border infrastructure. Seven integrated check-posts on India-Bangladesh border and eight land customs stations are being upgraded and will be operationalised soon," Sharma said.

Sharma said the two-way trade has the potential to touch US$5 billion in next two years from the current about US$3 billion.