Amidst strained ties, Bangladesh turns to India for 50,000 tonnes of rice

Guwahati, Dec 23: With political turmoil escalating and economic pressures mounting, Bangladesh's interim government has decided to secure its food supplies by purchasing 50,000 tonnes of rice from India.

This decision comes at a time when the country is grappling with inflation and increasing dependency on international aid to maintain food security, a Bangladesh daily reported.

Despite strained bilateral relations, largely due to concerns over the treatment of religious minorities in Bangladesh, the rice deal marks a crucial development in the relationship between the two nations.

The agreement, reportedly approved during an Economic Affairs Advisory Committee meeting led by Bangladesh's Finance Advisor Salehuddin Ahmed on December 18, highlights the continued economic interdependence between India and Bangladesh.

The rice will be sourced from Indian supplier M/s Bagadia Brothers Private Limited at a cost of USD 456.67 per tonne, a Bangladesh daily reported.

Bangladesh’s Food Ministry has reportedly confirmed the deal, highlighting that the imported rice will be used to support state-run food distribution programmes designed to assist the population amidst growing food insecurity.

Currently, Bangladesh holds a food stock of 1.1148 million tonnes, including 742,000 tonnes of rice.

In the ongoing fiscal year, the country has imported a total of 2.625 million tonnes of food grains, including more than 54,000 tonnes of rice.

The rice deal with India is part of Bangladesh’s strategy to address the economic strain while stabilising food supplies.

India, under its “Neighbourhood First” policy, has consistently extended support to Bangladesh, even during periods of diplomatic tension.

Despite a decline in trade relations between the two countries following the rise of the interim government in Bangladesh, the rice deal demonstrates India’s ongoing commitment to its neighbour.

India’s historical trade ties with Bangladesh have been strong, with bilateral trade growing from USD 3.2 billion in 2010-11 to USD 16.2 billion in 2021-22. However, trade has slowed in recent years as political relations between the two countries soured.

The rice deal is expected to strengthen the economic and diplomatic ties between India and Bangladesh, showcasing the importance of continued cooperation, particularly in times of crisis.