Should New Delhi Choke Dhaka? Bangladesh Turns to India for Rice Amid Strained Ties, But Exporters Push for Halt
December 24, 2025
In a pragmatic move underscoring the enduring pull of economic realities over political frictions, Bangladesh’s interim government has approved the import of 50,000 metric tonnes of non-basmati parboiled rice from India at approximately $355-360 per tonne. This forms half of a larger 100,000-tonne procurement deal, with the remaining 50,000 tonnes of white rice sourced from Pakistan under a government-to-government arrangement at a significantly higher $395 per tonne.
The decision, cleared on December 23 by the Advisory Council Committee on Government Purchase, aims to bolster public food stocks and stabilise domestic prices ahead of Ramadan, when demand surges. Bangladeshi officials, including Finance Adviser Salehuddin Ahmed, have emphasised that the choice of Indian rice was driven purely by cost savings—estimated at around 10 Bangladeshi taka (about $0.08) per kilogram compared to alternatives from Vietnam or elsewhere.
Ahmed went further, stating that Chief Adviser Muhammad Yunus is personally working to ease tensions with New Delhi and that trade decisions remain insulated from political rhetoric. “Our trade policy is not influenced by politics,” he said, describing the rice import as a step toward fostering “good relations.”
This development comes against a backdrop of severely strained bilateral ties since the ouster of former Prime Minister Sheikh Hasina in 2024. Recent months have seen diplomatic summons, protests outside missions in both capitals, and heightened concerns over minority protection in Bangladesh. Attempts by Dhaka to diversify imports—such as onions from Pakistan or Turkey—have often proven costlier, leading to price spikes and a reluctant return to Indian supplies.
Yet, not everyone in India views this reliance favourably. Some Indian rice exporters, frustrated by ongoing unrest and perceived risks to shipments, have urged the government to restrict or halt exports to Bangladesh. Citing security concerns amid attacks on Indian interests and retaliatory measures from Dhaka, exporters argue for leveraging India’s position as the cheaper supplier. Reports from December 22 indicate discussions among traders about skipping tenders or quoting inflated prices, with calls for New Delhi to impose bans to avoid “risky exports.”
The provocative question—”Time for New Delhi to choke Dhaka?”—echoes hawkish sentiments in certain Indian circles, suggesting food supplies as diplomatic leverage given Bangladesh’s dependence. However, no official restrictions have been announced, and private trade continues, including permissions for substantial volumes from India.
Economically, withholding supplies could harm Indian farmers and exporters while driving Bangladesh toward pricier options, potentially escalating tensions without strategic gains. As both sides navigate this delicate balance, the rice deal highlights a enduring truth: even in stormy political waters, trade often serves as a stabilising anchor. Whether this pragmatic outreach leads to broader détente remains to be seen, but for now, economic necessity appears to be bridging the divide.
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