BN to import 50,000T of rice

DHAKA: Bangladesh's state grains buyer issued a tender on Wednesday to import 50,000 tonnes of non-basmati parboiled rice to replenish reserves, a food official said.

The last date of submission of offers is Aug. 8, with validity up to Aug. 16 and the rice is to be shipped in 40 days after signing the deal.

In its previous tenders for 50,000 tonnes each of rice and wheat that opened on July 21, Bangladesh received the lowest offers at $429.71 and $309.11 a tonne respectively, including CIF liner out.

The government has turned to the wheat market after bulk buying of rice in the last fiscal year that ended in June, with a tender for 50,000 tonnes due to open on Aug. 1, as prices slid after Russia and Ukraine resumed normal export flows.

Neighbouring India has allowed 1 million tonnes of common rice exports for the first time since 2008 and lifted a four-year old ban on wheat sales, as it tries to balance the management of burdensome grain stocks against its fight with stubbornly high inflation.

Bangladesh, which switched to Black Sea wheat after once traditional supplier India, imposed the ban to hope for some relief as neighbouring country has allowed exports of the staples.

Bangladesh's imports of wheat and rice surged to 5.3 million tonnes in the last fiscal year, from 3 million the year before, putting additional pressure on the country's balance of payments.

Copyright Reuters, 2011