PM Modi Assures Bangladesh's PM Hasina of Easing Commodity Export Restrictions

New Delhi, Jan 15 (KNN) Indian Prime Minister Narendra Modi has assured Bangladesh Prime Minister Sheikh Hasina that New Delhi will ease export restrictions on key staples such as sugar, onions, rice, and wheat.

State Minister for Commerce Ahsanul Islam Titu conveyed this message, stating that the decision aims to stabilise the market and comes after a discussion between the two leaders during a telephone conversation on January 8.

Titu mentioned that the increase in freight charges is linked to the Ukraine-Russia and Israel-Hamas conflicts. Additionally, commodity prices are going up due to the taka depreciating against the dollar and the rising international market prices.

The relaxation of export restrictions specifically includes onions and various consumer goods crucial for Bangladesh.

In 2019, onion prices in Bangladesh went over Tk250 per kg because India suddenly halted exports. Since then, the prime minister and commerce minister have asked the Indian government to give advance notice to Bangladesh before enforcing any export bans. Unfortunately, India did not fulfil this request.

Bangladesh plans to keep importing regularly from India to ensure stability in its consumer goods market.

To support this, Bangladesh has asked for an annual quota from India, including 150,000 tonnes of rice, 2 million tonnes of wheat, 1 million tonnes of sugar, 600,000 tonnes of onions, 100,000 tonnes of ginger, and 50,000 tonnes of garlic.

On average, Bangladesh imports 600,000 tonnes of onions from India each year. Before the export ban in May 2022, India supplied 62 per cent of Bangladesh's total wheat demand through imports.

The move is crucial for maintaining stability in Bangladesh's consumer goods market, especially given past instances where export restrictions from India led to price hikes in Bangladesh.

On Saturday, the Prime Minister Hasina directed ministers to stabilise the consumer goods market ahead of Ramadan, the ministries of finance, commerce, food, agriculture, and industries will collaborate.

The government aims to ensure a regular supply of goods, address potential inflation, and prevent market manipulation.

Additionally, efforts will be made to enhance transparency in trade practices and hold accountable those attempting to artificially increase prices.

(KNN Bureau)