The dollar gained on Friday after data showed slower than expected US jobs growth, suggesting the Federal Reserve could leave interest rates unchanged later this month.

The unemployment rate fell to 4.4 percent last month from a revised 4.5 percent in November, the US Labor Department reported on Friday, even as employers added 50,000 jobs in the month. Economists polled by Reuters had forecast a gain of 60,000.

The latest job market data appears to give the central bank a bit of breathing room to leave short-term borrowing costs where they are, as Federal Reserve Chair Jerome Powell last month signaled policymakers are inclined to do at least in the near term.

Financial markets had been bracing for a possible Supreme Court decision that could strike down President Donald Trump’ssweeping tariffs.

But the court will now not issue that ruling on Friday, though a decision could still come next week.

The US economy added 50,000 jobs in December, according to Labor Department data released on Friday. That was lower than an estimated increase of 60,000 jobs forecast by economists in a Reuters poll.

The dollar was up 0.2 percent to 0.801 against the Swiss franc , headed for the second straight week of gains.

The dollar index rose 0.25 percent to 99.13 and was set for the second consecutive week of gains.

“In real life, the standard error margin for non-farm payrolls is 20,000 and so I don’t think the market is going to pay much attention to this,” said Steve Englander, head of global G10 FX Research at Standard Chartered.

Fed funds futures are pricing an implied probability of 95 percent that the central bank holds interest rates at its next two-day meet on January 27 and 28, up from 68 percent a month ago, the CME Group’s FedWatch tool shows.

Prices of mild steel (MS) bars in Bangladesh have begun to rise as a rebound in global ferrous scrap prices pushes up replacement costs for local re-rolling mills, raising concerns over construction expenses for homebuilders and contractors.

Industry insiders said imported scrap prices have increased by around $25-30 per tonne over the past week, reversing a prolonged downward trend seen over the last year.

The higher replacement cost is now feeding into the domestic market, with several small and mid-sized mills already raising rod prices by up to Tk1,000 per tonne in different regions.

Large producers are also expected to adjust prices soon, according to Bangladesh Steel Manufacturers Association (BSMA) President and GPH Ispat Chairman Jahangir Alam.

"Due to weak demand, steel prices have been declining in Bangladesh for nearly a year. At present, MS rods are selling at the lowest levels in the last five years," Jahangir told The Business Standard. "With the onset of winter, global scrap prices have risen sharply, leaving local manufacturers with no option but to adjust prices."

He further noted that rod prices in the Dhaka market rose by Tk1,000-1,500 per tonne on Thursday alone, adding that companies may eventually need to raise prices by Tk3,000-4,000 per tonne to remain aligned with international costs.

Data from international price reporting agency Argus show Turkey's deep-sea heavy melting steel (HMS) 1/2 (80:20) scrap benchmark falling to around $336 per tonne during the summer downturn before rebounding to the $360-370 range in early December.

Turkey, the world's largest seaborne scrap importer, often sets the direction of global prices. Market participants said renewed Turkish buying, combined with winter-related supply disruptions in Europe and North America, has tightened availability and pushed prices higher.

Moreover, during winter, scrap collection, transportation and port operations slow significantly in Western markets, reducing spot supply.

In parallel, India's increased presence in the import market has intensified competition for scrap cargoes, making it harder for Bangladeshi mills to secure material on favourable terms.

However, despite some wholesale price increases by producers, retail prices in Dhaka and Chattogram remained largely unchanged until Thursday, market checks found.

Chattogram-based trader Asaduzzaman, proprietor of Zaman Enterprise, said premium-grade BCSR rebar was selling at Tk80,000 per tonne, AKS and KSRM at Tk78,000, and GPH Ispat at Tk76,000.

"No company has officially announced a price hike yet, but we have been informally informed that prices will be raised within this week," he said.

While a few mills have already increased wholesale prices, major producers such as BSRM and AKS have so far refrained from immediate adjustments. Company officials said demand remains relatively weak compared to previous winter seasons, forcing cautious pricing decisions.

BSMA Secretary General and Rani Re-Rolling Mills Chairman Sumon Chowdhury said seasonal price increases during December to February are common due to higher international scrap demand.

"Bangladesh has no coordinated pricing mechanism. Mills are forced to react individually to global price movements," he said.

Anwar Group Chairman Manwar Hossain said the steel sector has faced prolonged financial stress since the pandemic.

"Negative returns over an extended period caused severe capital erosion, eventually forcing many factories to shut down," he said. "With scrap prices rising globally, local manufacturers now have no alternative but to raise prices."

During the Covid-era global scrap shortage, premium-grade rebar prices in Bangladesh surged to as high as Tk110,000 per tonne. A global slowdown and weak domestic demand later pushed prices down to Tk70,000-80,000 per tonne last year, the lowest level in five years.

Bangladesh's annual steel demand is estimated at 8-9 million tonnes, driven mainly by housing, infrastructure and industrial construction. The country's installed steelmaking capacity exceeds 11 million tonnes, indicating significant overcapacity amid slowing demand.

The sector has seen investments worth tens of thousands of crores of taka over the past decade, including major expansions by BSRM, GPH Ispat, AKS and KSRM. Despite this, capacity utilisation has remained under pressure due to subdued construction activity and volatility in raw material prices.

Bangladesh produces around 7 million tonnes of steel products annually and imports more than 4.2 million tonnes of scrap and billet to support production, industry data show.

Traders said sustained firmness in global scrap prices could keep local rebar prices under upward pressure in the coming weeks, even if domestic demand remains modest.

Bangladesh's four local airlines are preparing for an aggressive push into international markets in 2026 despite a global shortage of aircraft and tight leasing conditions slowing their plans to take on foreign rivals that dominate the country's skies.

The carriers are targeting South Asia, Southeast Asia, the Middle East and Europe, where demand from migrant workers and leisure travellers remains strong.

International passenger numbers are rising. Dhaka's Hazrat Shahjalal International Airport handled about 12.5 million international passengers in 2024, nearly 7% more than a year earlier. Yet, airlines say the post-pandemic recovery, coupled with manufacturing bottlenecks and delivery delays, has made it difficult to secure aircraft for new routes.

More than 70% of Bangladesh's international air travel market is currently controlled by 37 foreign airlines.

Industry insiders said the three private carriers, US-Bangla, NovoAir and Air Astra, together plan to open at least 15 new international routes. State-run Biman Bangladesh Airlines also aims to add more destinations beyond its Dhaka to Karachi relaunch on 29 January, subject to aircraft availability.

At present, only US-Bangla and Biman operate international flights, while NovoAir and Air Astra remain focused on domestic services.

Between 2021 and 2025, about 50 lakh Bangladeshis migrated overseas for work, according to the Bureau of Manpower, Employment and Training. Although domestic air travel has softened on some routes due to improved road and rail links, overall passenger traffic continues to grow, driven mainly by outbound labour and regional travel.

US-Bangla targets Europe and the Middle East

US-Bangla has spent several years preparing to enter the European market.

"We have been working extensively to start operations on the London and Rome routes," Kamrul Islam said. "It is not just about submitting applications. Airlines must meet strict international standards. Our target is to launch European flights within this year."

The airline also plans to begin flights to Madinah this year and needs at least three to four additional aircraft to support its expansion.

Capacity constraints, however, limit how quickly it can respond to changes in demand. "If India suddenly relaxes its visa regime, we will not be able to scale up flights immediately on high-demand routes like Chennai or Kolkata," Kamrul Islam said. "Earlier we operated daily flights to Chennai, which have now fallen to three a week. Kolkata has dropped from 14 flights a week to just three or four."

NovoAir eyes six new international routes

After three years of attempts to secure aircraft, NovoAir is hoping 2026 will mark its entry into international markets.

The airline has been trying to lease planes since 2023 but has struggled due to the global shortage of lease-ready aircraft. Its original plan was to acquire Airbus A321s, later revised to include A320s, but it has yet to secure any jets. Efforts to lease aircraft under the ACMI model, which includes crew, maintenance and insurance, have also been constrained by limited availability.

Managing Director Mofizur Rahman said a delegation would travel to Dublin later this month to hold talks with leasing firms. "If we can secure aircraft there, we hope to launch our international network by mid-year," he said.

NovoAir's initial targets are Bangkok, Kuala Lumpur and Singapore in Southeast Asia, and Dubai, Sharjah and Muscat in the Middle East.

Air Astra targets South and Southeast Asia

Air Astra also plans to enter international markets once it expands its fleet.

"We expect to receive new aircraft through leasing by the first half of 2026," said Sakib Hasan Shuvo, the airline's deputy manager of public relations. "After that, we plan to launch international routes, with Nepal, Kuala Lumpur, Bangkok and Singapore as our primary targets."

He said the airline has already received frequency allocations for 12 international routes from aviation authorities.

Biman's plans hinge on aircraft

Biman Bangladesh Airlines currently operates 22 international routes and plans to expand into East Asia, Europe and the United States. But aircraft availability remains the key constraint.

"Our expansion depends entirely on acquiring new aircraft through leasing," said Biman spokesperson Boshra Islam.

Although Biman's board has approved the purchase of 14 Boeing aircraft, officials said it would take at least four to five years before the first deliveries. In the meantime, the airline is negotiating with lessors to bridge the gap.

Earlier this year, Biman Managing Director Md Shafiqur Rahman said the airline was directly engaging leasing companies to overcome the shortage, which has so far prevented the launch of new routes.

Aircraft shortage slows expansion

Local airlines began planning route expansions to Southeast Asia and the Middle East in mid-2023, but global supply disruptions have delayed execution, sector insiders said.

The Russia-Ukraine war disrupted supply chains, while production halts and delivery delays, particularly involving Boeing 737 MAX aircraft, have created a worldwide shortage of narrow-body jets. As a result, airlines have struggled to secure planes through leasing.

"We have been consistently adding aircraft, and with recent additions our fleet now stands at 25, mostly leased," said Kamrul Islam, spokesperson for US-Bangla Airlines. "But a post-Covid surge in demand has created a global aircraft shortage. Manufacturers and lessors have not been able to keep up, especially for Boeing aircraft."

He said the company expects conditions to ease gradually as production normalises.

Auditors have expressed serious concern over the financial position of Altex Industries Limited, a company listed on the stock exchange, for the fiscal year 2024-25, citing massive debt discrepancies and an inability to meet loan obligations.

As of 30 June 2025, the company's retained earnings were negative, amounting to Tk86.24 crore.

The company failed to repay scheduled loan instalments, and Tk3.07 crore of loans have been classified as "bad and loss," remaining unpaid for a prolonged period.

The company has been unable to arrange funds to settle these loans, raising significant uncertainty over its ability to continue as a going concern.
The share price of the company closed at Tk13.50 on the Dhaka Stock Exchange (DSE) yesterday.

In the case of Prime Bank, bank confirmation indicates that the company's actual loan liability was Tk94.56 crore, while the company's books reported only Tk17.20 crore.

No provision of Tk68.27 lakh for interest was made, resulting in an overstatement of profit before tax and an understatement of bank loan liability.

For Sonali Bank, the company's loan stood at Tk227.52 crore, but interest of approximately Tk22.75 crore was not charged, causing loan liabilities to be understated and profit before tax to be overstated.

Similarly, for ONE Bank, the absence of interest provisions led to an understatement of loan liability by Tk1.56 crore.

Auditors also noted that although the company collected Tk32.51 crore from accounts receivable during the fiscal year, approximately 64% of collections were made in cash, posing a significant operational risk.

Additionally, the company paid Tk5.25 crore in advance to Cube Development Limited for factory construction, and a contingent liability of Tk6.93 crore with Titas Gas remains unsettled. Interest income of Tk1,034,674 from fixed deposits has been recorded as financial expenses, which is inconsistent with accounting standards.

The company's primary raw material is grey fabric, yet its usage rate relative to total sales is only 21%, which appears unusual. During the fiscal year, the company made no export sales, with all sales restricted to the domestic market. Furthermore, approximately 69% of the company's total funds are debt-dependent, increasing financial expenses and raising concerns about its financial stability.

According to the auditors, these circumstances create significant uncertainty regarding the company's ability to continue as a going concern. They emphasised the urgent need for proper loan management, interest provisioning, cash transaction control, and resolution of contingent liabilities.

In December 2024, Sonali Bank decided to sell the mortgaged assets of Alltex Industries through an auction to recover the outstanding loans of the listed textile manufacturer.

To recover the funds, the bank plans to auction 14.7 acres of Alltex's land, its manufacturing facilities and offices, raw materials, and spare parts, all of which were mortgaged for the loan.

Kay & Que (Bangladesh) Limited has signed an Application-to-Person (A2P) aggregator agreement with Grameenphone, in a move that strengthens the company's push into digital services and deepens its role in the country's telecom value chain.

Under the agreement, signed within the licensing framework of the Bangladesh Telecommunication Regulatory Commission (BTRC), Kay & Que will act as an aggregator for the country's largest mobile operator, enabling enterprises and service providers to send bulk and transactional SMS to Grameenphone subscribers through its platform.

The company disclosed the price-sensitive information on the Dhaka Stock Exchange (DSE) website today (11 January), saying the deal is expected to contribute positively to its business operations and revenue.

Despite the announcement, Kay & Que's share price fell 1.35% to close at Tk387.10 on the day, reflecting cautious investor sentiment amid broader market volatility.

The deal with Grameenphone is the latest in a series of similar agreements the company has signed with mobile operators in recent weeks. On 28 December, Kay & Que entered into an A2P aggregator agreement with Robi Axiata. Before that, it signed separate agreements with Teletalk Bangladesh on 11 December and Banglalink on 8 December.

These partnerships follow the company's receipt of the A2P SMS Aggregator Enlistment Certificate from the BTRC on 29 September, which cleared the way for its formal entry into the regulated A2P messaging business.

Alongside its digital expansion, Kay & Que is also diversifying its traditional operations. The company recently informed the market that retail sales of liquefied petroleum gas (LPG) at its Dakshinpara Dhamrail unit began on 2 September 2025, a move expected to add a new stream of revenue.

Kay & Que, long known for its CNG refuelling stations and stone trading business, has gone through a major transformation since its merger with IT firm MultiSourcing Limited in July 2023.

The merger followed years of struggle in legacy businesses such as carbon rods, coal tar and pesticides, which were eventually shut down due to supply constraints, weak demand and persistent losses.

Recognising the need for a strategic shift, the company decided in February 2022 to refocus on its core CNG operations while building a technology-driven business model through the IT merger.

The shift has begun to show in its financial results. The company reported earnings per share (EPS) of Tk2.73 for the July-September 2025 quarter, up from Tk1.15 in the same period a year earlier.

For the full year ended 30 June 2025, Kay & Que posted EPS of Tk9.49, a sharp rise from Tk0.67 the year before, driven by higher turnover and improved profitability.

Bangladesh government has halted the import of onions from India through the country's largest land port, Benapole, for the past two weeks, raising concern about a price hike.

Importers, however, can continue bringing in onions under previously issued permits until 30 January.

Officials did not grant any new permits for onion imports from India on Saturday.

Shyamal Kumar Nath, Assistant Plant Quarantine Officer at Benapole, confirmed that onion imports from India have been halted for the past two weeks and no new permissions have been issued.

Onions can still be imported under previously issued permits until 30 January, he added.

Since 24 December, no onion shipments have entered through Benapole. The last consignment of 60 tonnes arrived on that date, while 390 tonnes were imported between 15 and 24 December through six consignments carried in 13 trucks.

Royal Islam, an onion importer, said the government usually allows onion imports when local prices rise sharply.

Imports of onion were resumed on 7 December after a three-month halt, initially in limited quantities, which did not meet demand. Later, when import permissions increased, prices began to stabilise, falling to Tk35–40 per kilogram.

Since imports have now been suspended again, prices are rising to Tk50–70 per kilogram, he said.

"If the halt continues, prices could climb to Tk80–85. Even the news of the suspension has already pushed prices up by Tk10 per kilogram at the port," he added.

Because of the harsh environment in Greenland, lack of key infrastructure and difficult geology have so far prevented anyone from building a mine to extract the sought-after rare earth elements that many high-tech products require. Besides President Donald Trump prevails in his effort to take control of the arctic island, those challenges won't go away.

Trump has made reducing China's dominance over the global rare earth supply a top priority since the world's second-largest economy sharply limited access to those materials after the United States imposed broad tariffs last spring. His administration has poured hundreds of millions of dollars into the sector and has even acquired stakes in several companies. Now, the president is suggesting that taking control of Greenland from Denmark could be the answer.

"We are going to do something in Greenland whether they like it or not," Trump said Friday.

Greenland is unlikely to produce rare earths anytime soon, if at all. Although some companies are exploring its estimated 1.5 million tons of deposits, most projects remain at an early stage. Trump's interest in the island may be driven more by efforts to counter Russian and Chinese influence in the Arctic than by access to rare earths like neodymium and terbium used in advanced technologies.

"The fixation on Greenland has always been more about geopolitical posturing — a military-strategic interest and stock-promotion narrative — than a realistic supply solution for the tech sector," said Tracy Hughes, founder and executive director of the Critical Minerals Institute. "The hype far outstrips the hard science and economics behind these critical minerals."

Trump confirmed those geopolitical concerns at the White House Friday.

"We don't want Russia or China going to Greenland, which if we don't take Greenland, you can have Russia or China as your next-door neighbour. That's not going to happen," Trump said.

A difficult place to build a mine

Mining in Greenland faces major hurdles, including extreme remoteness, limited infrastructure, environmental risks, and harsh weather. Rare earths there are locked in complex eudialyte rock with no proven profitable extraction method. While Critical Metals' shares jumped after plans for a pilot plant, it and other companies remain far from building a mine and would need massive investment.

Producing rare earths is a tough business

Even the most promising rare earth projects can struggle to be profitable, especially when China floods the market with excess supply to lower prices and push competitors out, a tactic it has used repeatedly. Currently, most critical minerals are still processed in China.

The US is rushing to increase rare earth supplies outside China during a one-year easing of stricter restrictions that Trump said Xi Jinping agreed to in October. Several companies worldwide are already producing rare earths or magnets and can bring them to market faster than Greenland, which Trump has threatened to take militarily if Denmark refuses to sell it.

"There are very few folks that can rely on a track record for delivering anything in each of these instances, and that obviously should be where we start, and especially in my view if you're the U.S. government," said Dunn, whose company is already producing more than 2,000 metric tons of magnets each year at a plant in Texas from elements it gets outside of China.

The Bangladesh Bank (BB) has set a target to reduce non-performing loans (NPLs) to 25 percent from the current 36 percent by March, according to senior bankers.

In a meeting held at BB headquarters yesterday, banks were instructed to cut the volume of bad debts through loan rescheduling, accelerating legal recovery and implementing a comprehensive follow-up process for defaulters.

A delegation from the Association of Bankers, Bangladesh (ABB), led by its Chairman Mashrur Arefin, attended the meeting. It was chaired by BB Governor Ahsan H Mansur, with deputy governors, executive directors, and other senior officials of the central bank also present. Nazma Mobarek, secretary of the Financial Institutions Division, attended as well.

The meeting included a presentation on monetary policy and the country’s broader economic situation.

Central bank officials said the governor expressed dissatisfaction with banks’ efforts to tackle defaulted loans, despite various initiatives by the government and the central bank.

Defaulted loans in the banking sector rose to Tk 6.44 lakh crore, nearly 36 percent of total loans disbursed, by the end of September 2025, according to BB data.

In September 2024, the ratio of bad loans stood at 16.93 percent of total outstanding loans. It means that the share of NPLs had roughly doubled within a year.

This is the highest level since 2000, exposing vulnerabilities in the banking system and raising concerns about financial governance.

Under the central bank’s policy support, around 300 companies, including some of the largest defaulting conglomerates, applied for loan rescheduling or restructuring facilities worth around Tk 2 lakh crore during the first nine months of 2025.

In January last year, the BB formed a five-member committee, led by the executive director of the Department of Offsite Supervision, to provide policy guidance for restructuring or rescheduling corporate loans affected by circumstances beyond borrowers’ control.

The committee completed its tripartite meetings with borrowing companies and their financing banks on September 30.

Sources present at yesterday’s meeting said about 44 percent of the approved policy support has been implemented so far, with Islami Bank Bangladesh and United Commercial Bank performing at satisfactory levels.

Bankers expressed optimism that they would be able to reduce bad loans by March.

Speaking on condition of anonymity, a chief executive of a private commercial bank told The Daily Star that the meeting also discussed the foreign exchange market, noting that banks currently hold adequate foreign currency reserves.

“The BB governor asked banks to ensure smooth letter-of-credit payments ahead of Ramadan to maintain the food supply chain,” he said.

The CEO added that the central bank has injected around Tk 40,000 crore in local currency against its purchase of $3.50 billion over recent months.

At the meeting, bankers urged the BB to liberalise the inflow and outflow of foreign currency. The central bank asked the commercial lenders to make sukuk bonds tradable ahead of a planned government issuance of Tk 10,000 crore in sukuk bonds, according to sources.

During the meeting, the central bank instructed banks to run campaigns for the upcoming referendum at their head offices and branches.

The secretary of the Financial Institutions Division asked banks to carry out positive campaigns to raise public awareness about the referendum and encourage voter participation. Many banks have already begun outreach efforts at their branches.

The national election and the referendum on the July Charter are scheduled for the same day, 12 February. The interim government has already started campaigning for the referendum.

Vietnam and Japan crossed a major commercial milestone last year as two-way trade turnover exceeded US$50 billion for the first time, underscoring the strength and momentum of bilateral economic ties.

The achievement also reaffirmed Japan’s position as one of Vietnam’s largest and most stable trading partners at a time of continued volatility in the global economy.

The Vietnam Trade Office in Japan reported that bilateral trade delivered positive results throughout the year. Citing statistics from the Department of Customs, total import-export turnover between the two countries reached more than $51.43 billion, an increase of 11.28 percent compared to 2024.

Vietnam’s exports to Japan amounted to $26.77 billion, up 8.77 percent, while imports from Japan reached $24.68 billion, a year-on-year rise of 14.13 percent. As a result, Vietnam recorded a trade surplus of $2.09 billion with Japan last year.

Key Vietnamese export groups to Japan include textiles and garments; transport vehicles and spare parts; machinery, equipment, tools and other spare parts; wood and wood products; mobile phones and components; computers, electronic products and components; footwear; seafood; coffee; fruits and vegetables; cashew nuts and pepper.

Meanwhile, Vietnam imports a wide range of products from Japan, notably computers, electronic products and components; machinery, equipment, tools and spare parts; iron and steel products; fabrics; automobile components and spare parts; and seafood.

Notably, the two largest import categories – computers and electronic components, and machinery and equipment – together accounted for nearly 54 percent of Vietnam’s total import value from Japan.

The structure of Vietnam-Japan trade in 2025 remained highly complementary, reflecting the respective strengths of both economies and their deep integration into global supply chains.

Tạ Đức Minh, commercial counsellor of the Vietnam Trade Office in Japan, said the $50 billion milestone was not only historically significant but also reflected the substantive and sustainable growth of economic cooperation between the two countries amid ongoing global economic uncertainty. He added that these positive outcomes were closely linked to the strategic guidance of Vietnam’s Ministry of Industry and Trade in promoting bilateral economic and trade relations.

The ministry has laid an important foundation enabling businesses in both countries to expand cooperation and integrate more deeply into regional and global value chains, Minh said.

This progress has been driven by the negotiation and effective implementation of free trade agreements, including the Vietnam-Japan Economic Partnership Agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership, alongside policies helping enterprises take advantage of tariff preferences and guidance on developing key export sectors.

To sustain and accelerate growth in bilateral trade, Minh said the trade office would proactively monitor and analyse developments that could affect trade between Japan and Vietnam this year, promptly advising the Government and ministry leaders on policy responses and issuing early warnings to the business community.

Efforts will also continue to intensify trade promotion, diversify export products for the Japanese market, expand market development activities in Japan and invite Japanese business delegations to take part in domestic trade promotion programmes.

In addition, the trade office will support enterprises in boosting competitiveness by providing market information, updating technical standards and import regulations, and assisting Vietnamese companies with brand building and product marketing in Japan, including identifying reputable distribution partners and connecting with suitable retail channels.

The Vietnam Trade Office in Japan has served as a direct and effective bridge between businesses of the two countries. In 2025, it coordinated and supported Vietnamese enterprises in participating in major trade and investment promotion events, including Foodex Japan 2025, the M-Tech Manufacturing Expo, Gift Show, DIY Show, fashion and textile exhibitions, building and decoration fairs, as well as Vietnam festivals in Tokyo and Kanagawa.

The office also hosted Japanese business delegations in Vietnam for trade fairs and market surveys, connecting companies across key sectors. These efforts helped boost trade and strengthen market knowledge, technical standards, and long-term cooperation.

With the support of the MoIT, the direct assistance of the Vietnam Trade Office in Japan, and the proactive efforts of the business community, the Vietnam-Japan trade and investment cooperation is expected to grow strongly in the time to come.

Last week's much-hyped meeting on the listing of state-run and multinational companies delivered little beyond a renewed reminder of the government's intent to their top management.

Despite Finance Adviser Dr Salehuddin Ahmed's claim that 10 companies had agreed to offload shares, meeting participants told The FE in recent telephone conversations that the representatives had only committed to placing the matter before their boards.

Dr Ahmed on Wednesday held a meeting at the Bangladesh Secretariat with three advisers and top officials of targeted state-run and multinational companies, including Unilever Bangladesh, to press the issue.

"But no procedural progress could be achieved at the meeting," said one participant, requesting anonymity.

The FE spoke to three meeting participants, whose accounts corroborated each other regarding the outcome.

Some participants defended their non-listed status, while others openly argued against listing.

A representative of Unilever Bangladesh told the meeting that its subsidiary, Unilever Consumer Care, had already been listed on the bourses and that this fulfilled the obligation to share profits with the public.

However, Unilever Consumer Care was listed when it was GSK Bangladesh. Unilever acquired the company later on in June 2020.

Sources said the finance adviser rebuked companies that expressed reluctance to issue primary shares in the secondary market.

He reminded the representatives that it was the government's decision to offload its own stakes in multinational companies.

"Then why would you not offload your shares?" the finance adviser asked.

He told the Unilever representative that the company must offload shares alongside the government's stake.

According to meeting sources, the adviser said the government had already decided to offload its 5 per cent stake and that the company would have to offload another 5 per cent.

The chairman of the state-run Investment Corporation of Bangladesh (ICB), Prof Abu Ahmed, told the meeting that the government should widen the tax differential between listed and non-listed companies to compel state-owned enterprises and multinational firms to enter the equity market.

He added that companies in the UK are required to offload at least 10 per cent of their paid-up capital, whereas the Bangladesh government was pressing for only a 5 per cent offloading.

Multinational companies, Prof Ahmed said, are sharing profits with the public in other countries. "Then why are they not doing it here?" he asked.

The interim government announced in May last year a plan to bring more companies to the secondary market to improve its depth.

So far, no visible progress has been made in executing the plan, and Wednesday's meeting also failed to move the process forward.

Asked about the meeting outcome, Prof Ahmed told The FE that it was a high-profile meeting attended by four advisers, bureaucrats and top officials of the targeted companies.

"A strong message was delivered, but we cannot speak about execution yet," he said. Two other participants also expressed dissatisfaction over the lack of progress in implementing the government's listing decision.

At Wednesday's meeting, a representative of Nestlé Bangladesh said the government held no stake in the company.

In response, the finance adviser said it did not matter whether the government had a stake and that the company would still have to go public.

The meeting also raised complications regarding the listing of Karnaphuli Fertiliser Company Ltd (KAFCO).

The company's regulations allow shareholders to transfer their shares to existing shareholders. A foreign shareholder is reportedly planning to transfer its stake, which the government could initially receive and later offload in the market.

Another participant, speaking on condition of anonymity, said that while the finance adviser strongly emphasised the need to list multinational companies, the commerce adviser later softened the tone.

Ultimately, representatives of state-run and multinational companies concluded the meeting by saying they would seek board approval for listing after placing the meeting minutes before their boards.

Bank deposit growth in Bangladesh reached its highest level in 20 months, standing at 10.80% at the end of November 2025, driven largely by a strong surge in remittance inflows, even as the domestic economy remained subdued.

According to data released by the Bangladesh Bank today (11 January), the total volume of bank deposits stood at Tk19.53 lakh crore at the end of November 2025, up from Tk17.62 lakh crore in November 2024.

The previous month's growth, recorded at the end of October, was 9.62%, while the last time growth exceeded 10% was in February 2024, when it stood at 10.43%.

Remittance flows as key driver

Economists and bankers largely attribute the strong growth to the robust inflow of remittances.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, told TBS that the remittance flow contributed the most to the deposit growth, noting that flows were "very good" during November and December. He explained that dollars arriving through the banking channel are converted into taka, which then comes into the banking sector.

"The domestic economy is still depressed, so the growth is not coming from there," Zahid said. "Savings increase when domestic income and remittances rise. Remittances increased in the last two months of 2025, but no signs of increasing domestic income were visible."

He also discounted the idea that reduced panic in the banking sector – despite central bank confidence-building measures – was the primary cause, noting that the "currency outside banks" figure shows little change.

Cenbank's dollar purchase aids liquidity

The increase in remittances, which stood at $2.88 billion in November 2025, has positively impacted the commercial banks' Net Open Position. This has led banks to sell their excess dollars to the central bank, resulting in taka flowing from the central bank into the commercial banking system. The Bangladesh Bank has purchased $3.75 billion from commercial banks so far in the current fiscal year.

Md Ahsan-uz Zaman, managing director of Midland Bank, confirmed this view, saying, "The Bangladesh Bank is buying dollars through auction, increasing market liquidity. This influx of funds is helping to boost bank deposits." He also mentioned that some deposits were accumulated due to the formation of a collective Islamic bank.

A private bank's head of treasury noted that deposit growth correlates directly with the remittance flow, stressing that the domestic income situation is currently "not very good."

Data analysis shows that within the first 11 months of 2025, only August and November recorded double-digit bank deposit growth.

Currency outside banking system declines

Adding to the positive trend, Bangladesh Bank data shows that the volume of currency held outside banks fell by 3.04% year-on-year in November 2025 to Tk2.69 lakh crore, compared to Tk2.77 lakh crore in the same month of 2024.

A senior central bank official suggested that money held outside banks is gradually returning to the formal financial system.

Bangladesh saw a robust rise in net Foreign Direct Investment (FDI) during the third quarter of 2025, reflecting growing investor confidence despite global economic uncertainties.

According to Bangladesh Bank data, net FDI inflow for July–September reached $315.09 million, marking a 202% year-on-year increase from $104.33 million in the same period of 2024.

Cumulative net FDI for January–September 2025 stood at $1.41 billion, up 80% from $780 million during the corresponding period of the previous year.

All major components of FDI showed significant improvement in Q3.

Equity investment rose to $101.12 million from $76.79 million a year earlier, while reinvested earnings jumped nearly threefold to $211.47 million from $72.90 million. Intra-company loans also reversed course, moving from a negative $45.36 million to a positive $2.49 million.

The strong Q3 performance built on a solid H1 showing, when net FDI in April–June reached $303.27 million, up 11.4% from $272.22 million in the same quarter of 2024.

Overall, net FDI in the first half of 2025 rose more than 61% compared to H1 2024.

Ashik Chowdhury, executive chairman of Bangladesh Investment Development Authority (Bida), said, "Bida's core focus is improving the business climate and building a credible investment pipeline. It is encouraging to see these pipelines convert into actual inflows.

"While Q4 may see some moderation ahead of elections, we expect a rebound afterward, supported by a strong investment pipeline."

He added that Bida's dedicated investment pipeline for 2025 has already exceeded $1.5 billion, in addition to traditional registered proposals, signaling continued optimism among investors.

The Dhaka Stock Exchange (DSE) suffered a sharp setback on Sunday as heavy selling in banking stocks dragged the key index lower, reversing recent gains and dampening investor sentiment at the start of the trading week.

The downturn was broad-based, with all major large-cap sectors closing in the red, but losses in banks played the most decisive role in pulling the market down.

The benchmark DSEX index fell by 58 points, or 1.17%, to settle at 4,939, while the blue-chip DS30 index dropped 18 points, or 0.97%, to close at 1,896.

Market breadth was heavily skewed toward decliners, with 313 stocks ending lower against just 38 advancers, as selling pressure intensified across the board.

Turnover also slipped to Tk412 crore, reflecting cautious trading activity, while overall market capitalisation shrank by around Tk2,000 crore in a single session.

Banking stocks were at the centre of the sell-off, with the sector shedding 1.77% on the day.

Market participants said the decline was largely driven by short-term investors locking in profits after a strong rally in recent weeks.

Over the past three weeks, the banking sector's market capitalisation had surged by nearly 8%, or about Tk5,000 crore, raising concerns of overbought conditions. As profit-taking set in, most banking shares came under pressure, erasing a portion of those gains.

Out of the 36 banks listed on the DSE, share prices of 27 lenders declined, while the remaining nine ended the session unchanged. The selling spree in banks weighed heavily on overall market sentiment, given the sector's significant weight in the indices and its role as a bellwether for the broader market.

Market analysts said the near-term direction of the market will largely depend on whether banking stocks stabilise after the recent correction. While fundamentals of some large banks remain relatively strong, investors are likely to stay cautious in the coming sessions, closely watching sector-specific developments and broader economic signals before rebuilding positions.

Losses were not limited to banks. Non-bank financial institutions experienced the steepest sectoral decline, dropping 1.95%, amid lingering concerns over asset quality, regulatory actions and the financial health of weaker players.

Engineering stocks fell 1.16%, while telecommunications declined 0.93% and pharmaceuticals slid 0.91%. Fuel and power shares lost 0.66%, and food and allied industries slipped 0.36%, highlighting the extent of the market-wide pullback.

Trading activity was concentrated in a handful of stocks, with Orion Infusion, Dominage Steel, City Bank, Square Pharmaceuticals and Uttara Bank emerging as the top turnover leaders.

Despite the weak overall market, a few stocks managed to post gains. First Finance topped the gainers' list, while Shinepukur Ceramics, Familytex BD, Zaheen Spinning and Union Capital also closed higher.

On the flip side, several troubled non-bank financial institutions, already under liquidation threat, dominated the list of top losers. Shares of Fareast Finance and International Leasing suffered steep declines, reflecting heightened investor anxiety following recent regulatory signals and concerns over the future of non-viable institutions.

The bearish mood extended to the Chittagong Stock Exchange (CSE) as well. The CSCX index fell by 73 points, or 0.84%, to 8,579, while the CASPI index dropped 116 points, or 0.83%, to close at 13,877. Turnover at the port city bourse plunged sharply to Tk4.03 crore, underscoring the subdued trading environment.

There has been no improvement in Bangladesh's food supply system in the first half of FY2025–26, the Centre for Policy Dialogue (CPD) said today (10 January), warning that structural weaknesses continue to keep prices elevated despite easing global trends.

The assessment was presented by Executive Director Fahmida Khatun during CPD's independent review of the state of the economy at a press conference in Dhaka.

CPD said weaknesses in storage, distribution and market competition remain unresolved, contributing to persistently high food prices.

Inflation stood at 8.49% in December. While food inflation has declined slightly, non-food inflation remains high, putting pressure on households.

The organisation questioned why domestic food prices have not fallen in line with global trends.

It noted that global prices of key commodities such as sugar and edible oil fell by around 40% in November, but Bangladesh has not seen a similar reduction.

CPD pointed out discrepancies in the domestic market, saying the country produces more rice than its estimated demand.

Annual demand stands at 41 million tonnes while production is 44 million tonnes. However, prices remain high, partly due to weaknesses in supply management.

It said profit margins are highest in perishable items such as green chillies, brinjal, beef, and fish, where middlemen have greater control over the supply chain.

In contrast, price variation in rice is lower.

The organisation also noted a decline in agricultural labourers' wages, even as food prices continue to rise.

On policy recommendations, CPD stressed that inflation cannot be reduced merely through higher market interest rates.

It said increasing supply, preventing hoarding and enhancing market competition are necessary to stabilise prices.

The organisation called for an integrated food policy framework to ensure effective imports, maintain adequate food stock, and streamline supply and transport systems.

It also stressed the need to ensure the timely supply of quality seeds and fertilisers to boost Aush and Aman production.

The government is weighing a range of policy options – including tighter import controls, curbs on duty-free yarn imports and incentives to encourage the use of locally produced yarn – as it comes under growing pressure to protect domestic spinning mills from a surge in imported yarn, particularly subsidised supplies from India.

Officials from the Bangladesh Trade and Tariff Commission (BTTC) met representatives of the Bangladesh Textile Mills Association (BTMA) and the country's two garment exporter bodies in Dhaka on Wednesday. While participants broadly agreed on the need to safeguard the textile value chain, no decision was reached amid sharp differences between mill owners and garment exporters.

"We are studying the issue and working on it," Commerce Secretary Mahbubur Rahman told The Business Standard when asked whether the government was considering import restrictions to protect local textile industries.

Bangladesh's ready-made garment (RMG) sector, the world's second-largest exporter, has developed significant backward linkages over the years. Local textile mills now meet about 60% of the demand for woven fabrics and almost the entire yarn requirement of the knitwear sector. Despite this, spinning mills have been under severe financial stress for more than a year, often selling yarn below production cost to remain competitive.

Mill owners say unsold yarn worth more than $1 billion is currently piled up across factories. The BTMA recently urged urgent government intervention, warning that an industry which has attracted investments of around $23 billion is at risk.

According to BTMA data, Bangladesh imported yarn worth about $2.20 billion in 2024, of which roughly 76%, around $1.64 billion, came from India. Spinners argue that Indian exporters benefit from subsidies provided by both the central and state governments, estimated at about $0.30 per kilogram of yarn, enabling them to undercut domestic producers.

A senior BTTC official who attended Wednesday's meeting, speaking on condition of anonymity, said all parties recognised the need to protect the textile sector, but competing interests prevented a consensus.

"Before taking any decision on import restrictions or other measures, we need a deeper assessment of WTO rules, revenue implications and the legal aspects," the official said.

Industry insiders said the meeting discussed the possibility of suspending yarn imports or imposing additional duties on 10 to 30 count yarns for one year. These categories account for nearly 95% of Bangladesh's total yarn imports.

BTMA Director Masud Rana proposed a 7% incentive for exporters using locally produced yarn, a suggestion supported by representatives from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). However, two other BTMA representatives called for a complete withdrawal of duty-free yarn imports under the bonded warehouse facility.

A BKMEA leader present at the meeting said data presented there showed yarn imports had declined over the past six months compared to the same period a year earlier.

Garment exporters push back

Garment exporters, however, strongly opposed any move to restrict imports.

Fazlee Shamim Ehsan, executive president of BKMEA, said exporters were already operating under intense cost pressure. "About 80% of exporters are selling below production cost," he said. "If yarn imports are restricted, costs will rise further and buyers may shift orders to countries like India, where prices are lower."

While acknowledging the need to support the textile sector, Ehsan argued that import restrictions were not the right solution. "The government could instead provide special incentives or other forms of support to spinners," he said.

BGMEA leaders echoed similar concerns, questioning whether international buyers would be willing to absorb higher costs if local yarn prices exceeded imported alternatives.

Textile mill owners, however, warned that continued inflows of low-priced yarn could permanently erode domestic capacity. Former BTMA vice-president Salehuddin Zaman Khan described Indian yarn shipments as a form of dumping. "If local mills shut down, garment manufacturers will eventually be forced to import yarn at higher prices," he said.

BTMA Director Khorshed Alam said even vertically integrated manufacturers were unable to rely on their own production. "A representative from RN Spinning told the Tariff Commission that he was forced to import yarn because he could not match imported prices even for use in his own garments factory," Alam said. "The benefit of cheaper yarn is ultimately captured by buyers, not local producers."

BTMA President Showkat Aziz Russell has said nearly 100 textile mills have already shut down fully or partially, adding that he himself was forced to close one of his factories.

Bond misuse allegations resurface

Garment exporters also questioned whether import restrictions would achieve their intended objective. Ehsan warned that buyers might instead nominate Bangladeshi exporters to import grey fabric from India, offsetting any gains from restricting yarn imports.

Meanwhile, mill owners renewed allegations of widespread misuse of the bonded warehouse facility, which allows exporters to import raw materials duty-free on the condition that they are not sold domestically.

Khorshed Alam estimated that textile goods worth around $5 billion enter the local market annually through bond misuse and smuggling. "The local apparel market is worth about $12 billion, of which domestic producers supply only $7 billion," he said. "The remaining $5 billion is largely met through duty-free imports diverted into the local market."

He added that falling yarn prices have inflicted heavy losses on mills and reduced government revenue. "The price of 53-count yarn has fallen by Tk60 per kilogram since February, causing a net loss of Tk41 per kilogram," he said. "In November alone, one mill recorded losses of Tk1.8 crore."

VAT receipts have also declined, he said. "The mill paid Tk15 lakh in VAT in October, which fell to Tk8 lakh in November as sales dropped."

Lowering interest rates is not a matter of a single decision, as it risks disrupting the overall economic balance, Finance Adviser Salehuddin Ahmed said today.

Cutting interest rates without proper coordination among treasury bills, the banking sector, and market mechanisms could have adverse effects on the broader economy, he said at an event in Dhaka.

The adviser noted that interest rates are often discussed as if there were simple solutions, but in reality, reducing rates on one front can create pressure elsewhere in the economy.

Referring to the recent decline in treasury bill yields, Ahmed said its impact would gradually be reflected in the market.

However, if interest rates on treasury bills or savings instruments are increased, deposits in banks would fall, posing risks to the banking system.

The adviser said the core function of the banking sector is to build a bridge between savings and lending.

“Banks and non-bank financial institutions play this intermediary role, and any weakness in this structure negatively affects the entire economic system,” he said.

He was speaking at the publication ceremony of the Banking Almanac at the Centre on Integrated Rural Development for Asia and the Pacific in Dhaka.

Although the Banking Almanac does not provide direct investment guidance, it is an important data source for analysing the banking sector, Ahmed said.

The publication includes key information such as paid-up capital, authorised capital, capital ratios, provisioning, retained earnings, and credit-deposit ratios.

Discussing the current state of the banking sector, the adviser said the situation was critical when he assumed office. However, recent data analysis indicates signs of positive change in provisioning and lending activities at some banks, which are reflected in the Banking Almanac.

On inflation, he said it cannot be controlled through monetary policy alone, adding that sustainable solutions require supply-side management, market supervision, and cooperation from both businesses and consumers.

The adviser urged journalists not to portray Bangladesh solely in a negative light but to highlight positive developments alongside constructive criticism, as the country has made notable progress despite many constraints.

Bangladesh's economy is expected to grow 4.6% in the current fiscal year (FY26), up from an estimated 4.1% a year earlier, before rising further to 5.4% in FY27, according to a United Nations report.

But the projected growth still remains short of pre-pandemic levels.

Released on Thursday (8 January), the UN Department of Economic and Social Affairs report titled "World Economic Situation and Prospects 2026" also anticipated some relief on prices, with inflation expected to ease to 7.1% in FY26 and further to 6% next fiscal year.

Inflation, however, has remained elevated so far in the current fiscal year, staying above 8% over the past six months.

The forecast further predicts a rise in Bangladesh's GDP in FY26, aligning with positive growth projections from the Asian Development Bank, World Bank, and International Monetary Fund.

The Asian Development Bank, in its September 2025 outlook, projected Bangladesh's GDP growth at 5% in FY26. In October last year, the World Bank forecast growth of 4.8% in FY26, rising to 6.3% in FY27.

Around the same time, the International Monetary Fund projected growth of 4.9% for FY26 and 5.7% for the following fiscal year.

However, the interim government has set a higher GDP growth target of 5.5% for FY26, exceeding the projections made by international agencies.

South Asia to remain resilient

According to the UN report, economic growth in South Asia is expected to remain relatively strong, though slightly moderating in the near term. Regional growth is projected to ease from an estimated 5.9% in 2025 to 5.6% in 2026, before recovering to 5.9% in 2027. Trade policy uncertainty and high public debt were cited as continuing constraints for several economies.

India's economy is estimated to have grown by 7.4% in 2025 and is forecast to expand by 6.6% in 2026 and 6.7% in 2027, supported by resilient private consumption and strong public investment, which are expected to offset the impact of higher United States tariffs on exports.

Bhutan is projected to maintain growth above 6% in the near term, driven by strong government spending and the ongoing recovery of agriculture and tourism. Growth in the Maldives and Sri Lanka is forecast to moderate to around 4.3% and 4.0% respectively in 2026.

Pakistan's economy is expected to grow by 3.5% in FY26, up from an estimated 3.1% in FY25, while Nepal's growth is forecast to ease slightly to 4.3% in FY26 from an estimated 4.4% the previous year.

Global growth to remain subdued

At the global level, the UN projects economic growth to slow to 2.7% in 2026 before edging up to 2.9% in 2027, still below the pre-pandemic average of 3.2% recorded between 2010 and 2019.

The report noted that a sharp increase in United States tariffs had "created new trade frictions", although the lack of broader escalation had helped limit immediate disruption to international trade.

"A combination of economic, geopolitical and technological tensions is reshaping the global landscape, generating new economic uncertainty and social vulnerabilities," UN Secretary-General António Guterres said.

He added, "Many developing economies continue to struggle and, as a result, progress towards the Sustainable Development Goals remains distant for much of the world."

The Indian textile and garment industry is deeply concerned over US President Donald Trump's warning of imposing a 500% tariff on imports from countries that purchase Russian oil. The announcement has already unsettled markets, with shares of Indian exporters falling sharply in Thursday's (8 January) trading.

If implemented, the proposed tariff would be added to the existing 50% import duty imposed last year, significantly increasing the cost burden on Indian goods entering the US, with exporters fearing such a move could severely disrupt trade flows.

Apprehension is particularly visible in Tiruppur, Tamil Nadu, the country's largest knitwear cluster, which contributes nearly 90% of India's knitwear exports.

Ajay Srivastava, founder of the Global Trade Research Initiative, warned that a 500% duty—along with possible secondary restrictions on services—could virtually shut down India's $120 billion annual exports to the US, its largest overseas market.

Vijay Agarwal, chairman of the Cotton Textiles Export Promotion Council, noted that overseas buyers who had earlier planned to shift sourcing to India are now reconsidering due to uncertainty surrounding Trump's threat. Since August last year, the existing 50% US tariff has already forced Indian exporters to cut prices, seek alternative markets, and reroute shipments through neighbouring countries.

The US currently accounts for nearly 30% of India's garment exports. During Fiscal Year 2024–25, India exported apparel and textiles worth $37 billion. Industry data shows apparel exports rose marginally, while textile shipments declined in the April–November period.

Rajat Jaipuria, managing director of Rajalaxmi Cotton Mills, cautioned that a 500% tariff would effectively function as an embargo, with severe consequences for the sector.

Bangladesh Bank Governor Ahsan Mansur has issued a stern warning that the "culture of looting" within the nation's banking sector will never be allowed to return.

He emphasised that achieving a transparent financial system requires the essential cooperation of all stakeholders.

The governor made the remarks while speaking as the chief guest in the closing session of the International Islamic Finance and Banking Conference held at the Nawab Nawab Ali Chowdhury Senate Bhaban in the University of Dhaka, on Saturday (10 January).

Mansur noted that Islamic, or Shariah-based banks have historically been competitive, offering attractive profits to depositors.

However, he pointed out that significant sums were looted from this sector due to a failure to ensure corporate governance by specific individuals and institutions - a pointed reference to the unprecedented assault on the banking sector by the ousted Awami League regime's cronies, most notably the S. Alam Group, which secretly took control of at least six banks. All of them were Shariah-based.

Despite these challenges, the Governor highlighted that public trust in Islamic banking remains intact. This was amply demonstrated by the fact that these banks received the highest volume of deposits over the past year.

Specifically, Islami Bank Bangladesh has already begun returning the liquidity support funds it previously received from the central bank.

To prevent future financial crimes and ensure transparency in loan disbursement, the governor announced that Bangladesh Bank has implemented strict control measures.

"A new Islamic Banking Act is currently being drafted to provide a more robust legal framework for the sector," Mansur revealed.

He also called upon Shariah Boards to play a more proactive and courageous role. He urged board members to act independently and without fear of losing their positions, emphasising that their oversight is crucial for the sector's integrity.

Addressing the 'Sukuk' (Islamic bond) market, the governor admitted that the forced sale of the Beximco Sukuk Bond had damaged the market's reputation and eroded investor confidence.

However, the governor noted that the government has been requested to issue new Islamic Sukuk bonds, and preliminary work on this has already commenced.

Concluding his speech, Mansur reiterated that "financial autocracy" has no place in Bangladesh's future.

He stressed that while the central bank is taking the lead, the support of academicians, professionals, and the general public is vital to building a world-class Islamic banking sector defined by governance and accountability.

Academics, researchers, and Islamic Banking experts attended the event.

India's rice exports jumped 19.4% last year to the second-highest on record after New Delhi lifted all export curbs, making shipments more competitive, government and industry officials told Reuters today (10 January).

An improved flow of rice from the world's largest exporter of the grain curbed shipments from rivals Thailand and Vietnam and drove prices in Asia to their lowest in nearly a decade, easing costs for poor consumers in Africa and other regions.

"Indian shipments rebounded quickly after the government lifted export restrictions" in March, said a government official, who asked not to be named as he was not authorised to speak to the media.

As supplies improved with record production, India removed the last of the export imposed in 2022 and 2023.

Exports rose to 21.55 million metric tons from 18.05 million in 2024, near the 2022 record of 22.3 million tons, the official said.

Non-basmati rice shipments jumped 25% to 15.15 million tons, while basmati exports increased 8% to a record 6.4 million tons, he said.

Non-basmati rice shipments rose sharply to Bangladesh, Benin, Cameroon, Ivory Coast and Djibouti, while Iran, the United Arab Emirates and Britain increased purchases of premium basmati rice during the year, said another government official.

India usually exports more rice than the combined shipments of the world's next three largest exporters: Thailand, Vietnam and Pakistan.

"Indian rice is very competitive compared with supplies from other exporting countries, with lower prices helping India regain lost market share," Nitin Gupta, senior vice president at Olam Agri India, said on the sidelines of the India International Rice Summit.