A senior food ministry official informed Bangladesh signed a treaty to export 50,000 tons of rice to Sri Lanka at $450 a ton in a first government-to-government deal. Mohammad Sarwar Khan, director general of the Bangladesh food department, and Nalin Fernando, chairman of the Lanka Sathosa Ltd, signed the deal.

According to the Ministry of Food, the nation has around 1.083 million tons of rice stocks as on December 2, 2014, up about 67% from stocks of about 650,160 tons during same phase last year.

Robust output and wholesome reserves have encouraged the Bangladesh government to start the plan to export rice. Bangladesh exports a lesser amount of aromatic rice, however this deal would be its first export of non-fragrant coarse rice.

FAO has estimated Sri Lanka’s 2014 rice imports to rise about nine times to around 200,000 tons from around 22,900 tons in 2013. It has predicted Sri Lanka’s total paddy production to falling-off to around 3.6 million tons in 2014 down about 22% from around 4.6 million tons produced in2013. The price of rice has boom in Sri Lanka after production dived due to an 11 month scarcity, which authorities believe to be the nastiest in past.

Bangladesh expends nearly all its production to nurse its population of 160 million. It often needs to import rice to cope with lacks triggered by natural disasters such as floods or droughts.

According to data from Bangladesh Bureau of Statistics (BBS) Bangladesh produced around 34.36 million tons of rice in 2013­14, up about 2% from around 33.76 million tons last year. Sri Lanka’s rice production is squeezed from a severe drought.

Sri Lanka’s Finance Ministry condensed taxes on rice imports in April and on pulses in July to moderate the outcomes of this year’s dearth on the market.

The government has confided that the existing rice stocks are sufficient to encounter the country’s intake needs.