Essar Shipping locks in upper circuit as its two vessels engage in rice export to Bangladesh

As per the agreement, Bangladesh is set to buy 1,50,000 tonnes of rice from India.

Essar Shipping Limited has informed the bourses that two of its handysize vessels, Tvisha and Tuhina, weighing 13,000 DWT, have been engaged in exports of rice from India to Bangladesh as per the recent bilateral trade agreement signed between the two neighboring countries. 

As per the agreement, Bangladesh is set to buy 1,50,000 tonnes of rice from India. It would be the first such bilateral deal in the last three years. 

Both these vessels have been continuously employed in back-to-back business to export rice since March 2021. 

India saw a surge in farm exports in FY21 despite the pandemic crisis, which was driven by record-high sales of rice i.e. 13.9 million tonnes of non-basmati and 4.6 million tonnes of basmati along with sales of 2.08 million tonnes of wheat, a six-year high. In fact, the growing demand for rice overseas is expected to be a big win for exporters of the commodity in India. 

Bangladesh, the world's third-biggest rice producer with an output of almost 35 million tonnes a year, relies on imports from time to time to cope with shortages caused by natural disasters such as floods or drought. 

With this, the stock of Essar Shipping has locked in an upper circuit of 5 per cent at Rs 11.84 from its previous close of Rs 11.28 on BSE.