Commodities Buzz: Bangladesh To Increase Rice Import Duty By 28 percent , Indian Rice Exports To Take A Hit

Bangladesh may impose a 28 percent import tax on rice to support local farmers as production from the summer-sown crop is set to surpass the target, two government officials said on Wednesday.

The duty hike would reduce imports, especially from neighbouring India, which emerged as a biggest supplier to the south Asian country last year after floods ravaged its crop.Bangladesh imported a record of more than 3.7 million tonnes of rice in the July-April period, data from the countrys food ministry showed. A duty hike will hit India most. For the last year, exporters in eastern India have been banking on good demand from Bangladesh.

Bangladesh will cancel a deal with India to import 150,000 tonnes of rice over a delay in shipments. Bangladesh, however, had imported 100,000 tonnes of rice from another Indian state agency, PEC, at $ 455 a tonne.