Thursday, June 29 2006 13:26 Hrs (IST) - World Time -

Dhaka: India has assured Bangladesh that its ban on the export of pulses, sugar and wheat was global and not specific to Dhaka.

India's assurance comes in the wake of a 10 percent rise in the prices of pulses in Bangladesh following New Delhi's ban on export of the commodity.

Indian High Commissioner to Bangladesh Veena Sikri, in a meeting with Foreign Minister Morshed Khan, explained that India had resorted to the ban to tide over its domestic shortages.



Daily Star reported that 'a syndicate of importers' was trying to take advantage of the ban and creating 'an artificial crisis' in the domestic market. Quoting sources in trading circles, the newspaper said that India was 'not a significant supplier' of pulses.

In the wholesale market, superior grade Indian red lentils, consumed by both the rich and poor, was selling at Taka 63 a week ago, while ordinary Canadian and Australian red lentils were selling at Taka 56, which was Taka 51 last week.

In the retail market, Indian lentils were selling between Taka 64 and Taka 65 a kg on Wednesday against Taka 56 and Taka 57 a week ago, while the Canadian and Australian varieties were selling at Taka 52 against Taka 50.

"Bangladesh imports pulses mainly from Australia, Canada and Turkey, and the amount of its import from India is much insignificant. So, the Indian ban on pulses export should not affect our local market usually," the newspaper quoted Abu Taher, a Dhaka trader, as saying.

"But we are worried that a syndicate is creating an artificial crisis that has led to a rise in the prices," he said.

According to the commerce ministry, Bangladesh's total annual consumption of pulses is around 1.2 million tonnes.

"The finance minister of India has declared the ban to make a check and balance of sugar, pulses and wheat in the domestic market of India until the next harvest," Sikri said at a roundtable at the Bangladesh Enterprise Institute (BEI) in the city while responding to a question by a participant.

The BEI organised the roundtable on India-Bangladesh relations where a book,

"Bangladesh India Dialogue: Vision of Young Leaders", edited by Farooq Sobhan, a former foreign secretary, was also launched.