Soaring Inflation Pushes Bangladesh to Seek Help from India

In a crucial development in India-Bangladesh ties, Dhaka has sought assistance from India, reaffirming its reliance on its neighbor amid economic hardships. Despite challenges in their relationship, including allegations from Dhaka, New Delhi has upheld its commitment to Bangladesh under its ‘Neighbourhood First’ policy.

Rice Deal to Combat Food Crisis

Faced with soaring inflation and a food supply crisis, Bangladesh’s interim government has approved the import of 50,000 tons of rice from India. The rice will be used in state-sponsored food distribution programs, as 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.

Food Security Measures

As of December 17, Bangladesh’s food stock stood at 1.1148 million tons, including 742,000 tons of rice. In the ongoing fiscal year, the country has imported 2.625 million tons of food grains, including 54,170 tons of rice. For the 2024–25 fiscal year, the government plans to distribute 2.052 million tons of food grains through state channels. The procurement includes 800,000 tons of rice from the Aman season harvest and additional supplies from the Boro season in early 2025.

Energy and Fertilizer Imports

In addition to rice, Bangladesh has approved the purchase of Liquefied Natural Gas (LNG) and fertilizers to address its energy and agricultural needs. Reports indicate plans to procure LNG cargoes from Switzerland’s M/s TotalEnergies Gas and Power Limited, priced between USD 13.87 and USD 14.25 per MMBtu.

Procurement of Essential Goods

To stabilize its economy and food supply, Bangladesh’s Trading Corporation (TCB) is sourcing essential goods locally. TCB will acquire 10,000 tons of lentils from Sheikh Agro Food Industries at Tk 95.40 per kilogram and 11 million liters of soybean oil from City Edible Oil Limited at Tk 172.25 per liter.