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Businessmen Saturday claimed that India had asked its traders to stop exporting rice to Bangladesh through private channels. Several traders from both countries said the customs commissioner of Kolkata Thursday announced the decision in an order to the Indian exporters.

The Indian traders claimed that the customs office made the order as it was asked by the Indian central government to do so. The Indian businessmen then informed Bangladesh importers about the government's decision.

But Bangladeshi and Indian officials said they have no idea about the decision. Bangladeshi importers said Saturday said the sudden decision by India halted import of 100,000 tonnes of rice through the private sector.

The news of the restrictions frustrated the traders at Hili land port. Rajib Kumar Dutta of Messrs RK Trading and Mostafizur Rahman of Messrs Omrabad Rice Mill said the import of rice through Hili land port remained suspended.

They said they were facing financial losses because of the sudden decision and some 300 rice trucks ready to enter Bangladesh were left stranded on the Indian side of the land port.

Meanwhile, there are reports that the West Bengal government had asked rice mill owners to sell 50 percent of their rice to the government to help handle rationing.

The West Bengal government has also asked the mill owners to sell the rest 50 percent on to the open market. West Bengal has fixed 11.30 rupees for rice per kg to sell it to the government while 13.30 rupees have been fixed for open market sales.

The mill owners last week protested the lower rate fixed by the government. The protests were reported in the state's Bardhaman, Malda, Gangarampur, Gajol, Mehedi Para and Trimohoni.

The mill owners also stopped supplying rice to Indian exporters. Bangladeshi traders said the decision to halt rice exports through the private sector could hamper official efforts to export rice to Bangladesh, which needs the staple badly after massive crop losses made by recent floods and a devastating cyclone.

On Feb 4, the two sides sat in a meeting in Kolkata and decided that India would officially export 500,000 tonnes of rice. Indian rice exporter Jagadish Jajudia of Messrs Jajudia and Pampu of Messrs Marati International told bdnews24.com by phone that they were also in trouble because of their government's decision of not selling rice to Bangladesh. They said they would sit with the Indian officials Monday so that they could send rice to Bangladesh under letter of credit that had been opened earlier.

They said they would even go to court if nothing fruitful comes out of the planned meeting Monday. Ashok Agarwal, president of Hili Clearing Agents and Exporters Association, admitted to bdnews24.com that the Indian government had decided not to export rice through private channels. Ajoy Gupta, information and cultural affairs consular of the Indian High Commission in Dhaka, said that he was not aware of any such decision by his government.

"I don't know anything," Gupta said as he visited Hili land port Saturday. Md Aiyub Mian, acting secretary to the Ministry of Food and Disaster Management, told bdnews24.com by phone that he had no idea if India put any new restriction on exporting rice to Bangladesh through private channels.

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