Rice market in Bangladesh

Earlier Report Observations

The rice market in Bangladesh showed volatile dynamics from 2018 to 2020. In 2019, market volume contracted to 54.8 million tons due to a sharp drop in imports, coinciding with a period of price instability driven by domestic syndicates and rising paddy costs. However, the market recovered to 56.1 million tons in 2020 as a good boro season harvest supported domestic production, despite continued slowdowns in import procedures.

A turning point came in 2021 when the government cut rice import duties first to 25% and then to 22% in October to stabilize domestic prices. This triggered a surge in imports to 2.6 million tons and pushed market volume up to 59.4 million tons. The following year, market volume dipped slightly to 58.7 million tons as the ample aman season rice harvest increased domestic supply and lowered prices, reducing the need for imports, even though the Trading Corporation of Bangladesh approved 124 thousand tons of private sector imports.

In 2023, domestic rice production reached record levels, exceeding 60.6 million tons, which filled government and private warehouses and brought imports nearly to zero. Market volume consequently rose to 61.0 million tons. In early 2024, the government launched a new “food-friendly” program, reducing duties and taxes on rice and initiating subsidized supplies for millions of families to cushion consumer price increases.

Production rice in Bangladesh

In kind, 2017-2020, K t

From 2017 to 2020, Bangladesh held the fourth position globally in rice production.

Top producers of rice, 2017-2020

World map of production of rice, 2017-2020

Bangladesh's rice production grew for the third year in a row. In 2020, the country produced 56 057 thousand tons of rice, representing a modest increase of 2.3% compared to the previous year. Between 2017 and 2020, production rose by 7.6%, which translates to an average annual growth rate of 2.5%.

Annual dynamics of production in Bangladesh in kind, 2017-2020, K t

Exports rice from Bangladesh

Exports in kind, K t

The market showed significant volatility during this period. The lowest export volume was recorded in 2019 at 10 thousand tons, while the highest occurred in 2018 at 43 thousand tons, resulting in a peak-to-trough ratio of 4.2 times. In 2020, rice exports from Bangladesh reached 14 thousand tons, marking a substantial increase of 32.8% from 2019. The largest decline was observed in 2019, with a drop of 76.1%.

Annual dynamics of product's exports from Bangladesh in kind, 2017-2020, K t

From 2017 to 2020, Thailand, Sri Lanka, and Saudi Arabia consistently led as the top destinations for Bangladesh's rice exports in volume terms. Thailand accounted for 30.8% of exports, Sri Lanka for 24.5%, and Saudi Arabia for 9.9%, together making up 65.2% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Bangladesh in kind, 2017-2020

Exports in value, M $ US

After two years of decline, Bangladesh's rice exports in value terms rebounded. In 2020, exports amounted to 17 million US dollars, a significant increase of 51.2% over the previous year. However, over the 2017-2020 period, exports decreased by 21.8%, with a compound annual growth rate of -7.9%. The lowest value was recorded in 2019 at 11 million US dollars, which saw the largest decline of 43.9%.

Annual dynamics of product's exports from Bangladesh in value, 2017-2020, M $ US

During 2017-2020, Thailand, Saudi Arabia, and Sri Lanka remained the leading buyers of Bangladeshi rice in value terms. Thailand held 21.2% of exports, Saudi Arabia 17.9%, and Sri Lanka 15.3%, collectively accounting for 54.4% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Bangladesh in value, 2017-2020

Imports rice to Bangladesh

Imports in kind, K t

Bangladesh's rice imports in volume terms fell for the third consecutive year. In 2020, the country imported approximately 22 thousand tons of rice, a sharp decrease of 60.2% compared to 2019. Over the 2017-2020 period, imports dropped by 99.2%, with a compound annual growth rate of -79.8%.

Annual dynamics of product's imports to Bangladesh in kind, 2017-2020, K t

From 2017 to 2020, India was the primary supplier of rice to Bangladesh, accounting for 71.1% of total imports in volume. The remaining share was distributed among various other countries.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Bangladesh in kind, 2017-2020

Imports in value, M $ US

Bangladesh's rice imports in value terms continued to decline for the third year in a row. In 2020, imports totaled 23 million US dollars, reflecting a sharp drop of 35.2% from the previous year. Over the 2017-2020 period, imports decreased by 98%, with a compound annual growth rate of -73.0%.

Annual dynamics of product's imports to Bangladesh in value, 2017-2020, M $ US

Between 2017 and 2020, India dominated as the main source of rice imports to Bangladesh in value terms, representing 71.2% of total flows. The rest was spread across several smaller markets.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Bangladesh in value, 2017-2020