Date:14/02/2008 URL: http://www.thehindu.com/2008/02/14/stories/2008021455561300.htm

International - India & World

Ban on rice export to Dhaka goes

Haroon Habib

DHAKA: Rice import from India through Benapole and other land ports resumed on Wednesday after three days of suspension following the withdrawal of ban by the Government of India.

However, an order of India’s Director General of Foreign Trade said rice export was allowed only for those who opened Letters of Credit at over $500 a tonne.

Exports halted

Indian private sector rice exports came to a halt on February 9 as the Ministry concerned reportedly asked the Kolkata Customs Commissioner (Preventive) to suspend the exports.

However, Bangladesh food adviser A.A.M.M. Shawkat Ali hoped the sudden restriction would not affect the government’s procurement of five lakh tonnes from India.

Contract signed

Dhaka on Tuesday signed a contract with New Delhi to buy five lakh tonnes of rice promised by External Affairs Minister Pranab Mukharjee to meet the emergency need following last November’s catastrophic cyclone, Sidr.

A highly placed Bangladesh official, now in Kolkata leading a delegation, signed the contract with West Bengal Essential Commodities Supply Cooperative Ltd., said a government source.

Bangladesh finance adviser Mirza Azizul Islam hoped the import would be completed within the next 75 days.