Bangladesh Seeks India’s Support Amid Economic Crisis with Rice and Energy Imports

In a significant development for India-Bangladesh relations, Dhaka has turned to India for assistance as it grapples with rising inflation and a food supply crisis. Despite previous challenges and allegations, Bangladesh has reaffirmed its reliance on India, with the neighboring country continuing to honor its commitment under the ‘Neighbourhood First’ policy.

Bangladesh’s interim government has approved the import of 50,000 tons of rice from India to bolster its state-sponsored food distribution programs. The decision was confirmed during an Economic Affairs Advisory Committee meeting chaired by Finance Advisor Salehuddin Ahmed. The rice will be supplied by M/s Bagadia Brothers Private Limited at a rate of USD 456.67 per ton, offering a crucial lifeline in the face of food shortages.

As of December 17, Bangladesh’s food stock was reported at 1.1148 million tons, including 742,000 tons of rice. The country has already imported 2.625 million tons of food grains in the current fiscal year, including 54,170 tons of rice. Looking ahead to the 2024–25 fiscal year, Bangladesh plans to distribute 2.052 million tons of food grains, including 800,000 tons of rice from the Aman season harvest and additional supplies from the upcoming Boro season in early 2025.

In addition to rice, Bangladesh has also sought imports of Liquefied Natural Gas (LNG) and fertilizers to address its energy and agricultural needs. Plans are in place to procure LNG cargoes from Switzerland’s M/s TotalEnergies Gas and Power Limited, with prices ranging between USD 13.87 and USD 14.25 per MMBtu. The procurement of essential goods, including lentils and soybean oil, is also underway, with the Trading Corporation of Bangladesh (TCB) sourcing these items locally.

These measures underscore Bangladesh’s efforts to stabilize its economy and ensure food security, as it continues to rely on India and other international partners to navigate its economic challenges.