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India committed to ease export restrictions for Bangladesh.
Jan 18, 2024
Indian Prime Minister, Narendra Modi, has pledged to Bangladesh's Prime Minister, Sheikh Hasina, to alleviate export restrictions on essential commodities like sugar, onions, rice and wheat.
The decision follows a discussion between the two leaders on January 8. Factors such as the Ukraine-Russia and Israel-Hamas conflicts and the depreciation of the taka against the dollar have contributed to rising freight charges and commodity prices. The easing of export restrictions will specifically cover onions and several consumer goods crucial to Bangladesh.
Historically, sudden export halts from India, such as the 2019 onion export stoppage, have caused price surges in Bangladesh. Despite requests for advance notice of such bans, India has not complied. To maintain market stability, Bangladesh intends to continue regular imports from India and has requested an annual quota, including significant quantities of rice, wheat, sugar, onions, ginger and garlic.
Prime Minister Hasina has instructed ministers to stabilize the consumer goods market in anticipation of Ramadan. The government aims to ensure a regular supply of goods, mitigate potential inflation, and curb market manipulation, while enhancing trade transparency and holding price manipulators accountable.
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