In Demand

New Delhi, April 13: The ban on rice exports has hurt countries such as Bangladesh, Nepal and Africa, which import the commodity from India.

Sankar Dudhwewela, managing director of Anadi Rice Mill, said, “After we stopped exporting rice to Bangladesh, the price there in the open market has risen to Rs 35 per kg from Rs 15 per kg.”

Many traders believe the price difference between the two neighbours has also encouraged smuggling of the commodity across the India-Bangladesh border. “Smuggling is obvious. Rice in Indian mandis is sold at Rs 1,500 per quintal, while in Dhaka it is Rs 3,300 per quintal,” Dudhwewela added.

The situation has worsened with Vietnam and Cambodia stopping the export of the grain after Bangladesh refused to agree to their exorbitant rates. Current global prices range from $780 a tonne upwards. Last year, India exported around 4.5 million tonnes (mt) of rice, accounting for 20 per cent of the global trade.

According to a report by Standard Chartered Bank, Bangladesh, Nigeria, South Africa, Cote d’Ivoire, Somalia and Cameron imported 60 per cent of India’s rice, including 2mt of non-basmati rice. The report said Africa would be at a disadvantage because of the export restrictions.

Jacques Diouf, director-general of the Food and Agriculture Organisation, said, “The problem is serious around the world. We have seen riots in Cameron, Haiti and Burkina Faso.” The unrest may spread to countries where 50-60 per cent of the income is spent on food as global stocks are at its lowest since the 1980s.