India agrees to import quota of 7 vital food commodities, including rice and wheat

India has agreed to fulfil Bangladesh's request for the import of seven vital food commodities, including rice and wheat, subject to Bangladesh guaranteeing the import of the designated quantities within the specified annual quota.

At the same time, India has set a condition to ensure the specified amount is imported within the stipulated time.

The development happened during a virtual meeting titled "Fixation of the annual quota for Bangladesh in import of various essential commodities from India" between representatives from the two neighbouring countries on Sunday (20 August). 

Tapan Kanti Ghosh, senior secretary of the commerce ministry, led the Bangladesh side during the meeting.

An official of the commerce ministry who was present at the meeting told The Business Standard that India wants to set the conditions due to concerns that if Bangladesh does not import the designated quantities as specified in the quota, it might lead to losses for Indian farmers. 

Furthermore, India is also keen on implementing a time limit for the import of these commodities. 

Particularly concerning onion, garlic, and ginger, there has been a significant focus on determining a specific timeframe. 

This emphasis on setting a time limit is due to the challenges and costs associated with storing these perishable goods.

On the other hand, the Bangladeshi delegation discussed the pricing and tariffs of these products. They put forth a proposal suggesting that the prices of these commodities be set competitively in line with global market rates, according to the commerce ministry official.

Additionally, in cases where India applies extra tariffs due to exceptional circumstances, no additional levies should be imposed on goods imported under the quota system. However, Indian authorities responded to Bangladesh's proposal by stating that adherence to legal regulations is paramount and leaves no room for exceeding those boundaries.

Last month, Bangladesh submitted a report through the foreign ministry to the Indian authorities requesting an annual import quota for 15 lakh tonnes of rice and 25 lakh tonnes of wheat from India in order to protect its food security and stabilise prices amid concerns about potential supply disruptions caused by natural disasters and global crises.

The requested quota also included 10 lakh tonnes of sugar, 6 lakh tonnes of onions, 50,000 tonnes of garlic, and one lakh tonnes of ginger.

Subsequently, after discussions between the Ministry of Commerce and the Ministry of Agriculture and Food, adjustments were made to increase the quantities of some products. Later, the commerce ministry recalibrated the volume of goods and communicated these adjustments to the Indian authorities via the foreign ministry