Bangladesh hikes import duty on rice
In a move aimed at protecting its domestic rice cultivators from the competition posed by neighbouring countries like India, Bangladesh has decided to nearly double its import duty to 55%. This is the second hike this year, as it raised the duty from 2% in 2017 to 28% earlier this year. This is expected to have an adverse impact on India’s exports.
The rice industry in Bangladesh is facing an over-supply situation, resulting in dwindling prices, which have touched the lowest base in 3 years. The Government of Bangladesh is also planning to export the excess rice.