According to a news report by Reuters, Bangladesh is purchasing 1,50,000 tonnes of rice from India.
This bilateral will be the first such deal in three years to take place between the 2 countries.
This comes after the prices of rice in Bangladesh have risen due to floods.
India will sell rice to Bangladesh at higher discounts than what they sell to Thailand and Vietnam.
The rice will be purchased from the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) which is a state-run food procurement agency.