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India has partially lifted its three year old band on wheat export to Bangladesh. The Indian commerce ministry said India will export 400,000 tons of wheat to Bangladesh this year. R S Gujral, India’s director general of foreign trade, said that wheat will be exported to Bangladesh at economic cost.

In 2007, India, world’s second largest producer of wheat, banned export of wheat to Bangladesh. The prohibition was lifted temporarily in July of 2009. It was re-imposed again. A few weeks ago, Dhaka requested Delhi to lift the ban. Last week, Mashiur Rahman, Prime Minister Sheikh Hasina’s economic advisor led a high-level delegation to New Delhi.

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