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Bangladesh's Bid to Import Rice from India Hits Snag

Source: Reuters
14/12/2007

Dhaka, Dec. 14 - Bangladesh's attempt to import half a million tonnes of rice from neighbouring India to meet its immediate post-cyclone needs has hit a snag, after New Delhi said that only the Indian government could make such exports.

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"We hope Bangladesh will import the rice through the government channel, not from the private exporters," Pinak Ranjan Chakravarty, the Indian High Commissioner in Dhaka, said on Thursday.

Bangladesh needs 1.7 millions of food grains, including its main staple rice, either from import or grants, by the end of June. This is in the wake of Cyclone Sidr which destroyed large tracts of crops in the South Asian Country last month.

Indian Foreign Minister Pranab Mukherjee said early this month, after visiting some cyclone-devastated areas, that his country would lift a ban temporarily to allow Bangladesh to import 500,000 tonnes of rice to help Dhaka deal with the disaster.

Chakravarty said the ban was still on for private Indian exporters.

"However, Bangladesh can import the rice through government channels, which will be cost effective too," he said.

"The government will not make any profit from the export and unlike the private exporters will only add transport cost to the price," Chakravarty said.

Cyclone Sidr struck Bangladesh's coastlines on Nov. 15 with winds of 250 kph and a 5-metre sea surge, killing more than 3,200 people and devastating crops, homes and infrastructure.

Bangladesh's army-backed interim government said it would require $2.2 billion to rebuild the cyclone-ravaged infrastructure, make new shelters and rehabilitate the survivors.



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