India to Export 500,000 tonnes of Wheat, Rice to Bangladesh .

India on Saturday said it will soon export 500,000 tonnes of rice and wheat to Bangladesh despite a ban on outward shipments of the foodgrains.

"India will be exporting three lakh (300,000) tonnes of par-boiled rice and two lakh tonne of wheat to Bangladesh...PSUs (state trading firms) have been directed to do so expeditiously," Commerce and Industry Minister Anand Sharma told reporters after meeting his Bangladeshi counterpart Muhammad Faruk Khan here.

He said the exports would happen "soon".

The decision to export the rice and wheat was taken in August, an official said.

The Director General of Foreign Trade Anup K Pujari has been asked to monitor the exports.

Bangladesh imports about one million tonnes of rice and wheat annually.

The visiting minister had yesterday said that Bangladesh wants an agreement with India for import of wheat and rice every year.

There has been a ban on export of wheat and non-basmati rice since October 2007 and April 2008, respectively, to ensure availability of the grain in the domestic market and check the price rise. But the ban has been relaxed from time-to-time on diplomatic grounds.

Khan said his meeting with Sharma was "fruitful".

"We consider India not only as neighbour but as a brother and dear friend," he said adding that several bottlenecks in trade between the two countries have been resolved.

Sharma also said India would be importing 1.7 million apparel pieces from Bangladesh without any duty during the October-December quarter.

Under a trade facilitation initiative, India has allowed duty-free apparel import quota of 8 million pieces in a calendar year from Bangladesh.

Garments account for about 80 per cent of the total exports of Bangladesh.

The two countries also signed agreements to strengthen economic ties.

"We have agreed to strengthen border infrastructure. Seven integrated check-posts on India-Bangladesh border and eight land customs stations are being upgraded and will be operationalised soon," Sharma said.

Sharma said the two way trade has the potential to touch USD 5 billion in next two years from the current about USD 3 billion.

Source : blackseagrain.net