India pledges to lift export barriers for Bangladesh
Published on: January 18, 2024.
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Indian Prime Minister, Narendra Modi, has made a commitment to his counterpart in Bangladesh, Sheikh Hasina, to remove export restrictions on vital commodities such as sugar, onions, rice, and wheat. This decision comes after a discussion between the two leaders on January 8.
There are several contributing factors to this move, including the conflicts between Ukraine and Russia, and Israel and Hamas, as well as the devaluation of the Bangladeshi taka against the US dollar. These factors have led to increased freight charges and prices for commodities. The easing of export restrictions will specifically cover onions and various consumer goods that are crucial to Bangladesh.
India has a history of implementing sudden export bans, causing price surges in Bangladesh. One such example is the 2019 onion export halt. Despite requests for advance notice of these bans, India has not complied. To maintain stability in the market, Bangladesh intends to continue regular imports from India and has requested an annual quota that includes significant quantities of rice, wheat, sugar, onions, ginger, and garlic.
To prepare for the upcoming Ramadan, Prime Minister Hasina has instructed ministers to stabilize the consumer goods market. The government’s goal is to ensure a consistent supply of goods, minimize potential inflation, and prevent market manipulation. They also aim to increase trade transparency and hold those who manipulate prices accountable.
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