Govt Moves to Reduce Aromatic Rice Export Quotas Amid Price Surge

The government has moved to tighten controls on aromatic rice exports as rising domestic demand and unusually high prices have put pressure on the local market.

The Ministry of Commerce has taken an initiative to review previously approved export quotas and reduce or adjust them if necessary. As part of the process, companies that received permission to export aromatic rice have been asked to submit details of the actual quantities they exported within three working days.

The directive was issued in a letter from the Export-2 Branch of the Ministry of Commerce on Thursday.
According to the ministry, the current market situation and growing domestic demand for aromatic rice warrant a reduction or adjustment of previously approved export quantities. The companies concerned have therefore been instructed to submit detailed information on their actual exports to the Export-2 Branch within three working days.

Companies that failed to export their approved quantities or exported only part of their quotas are likely to come under review, with their unused quotas potentially being reduced or adjusted.

Since exports began, the price of aromatic rice in the domestic market has increased by as much as Tk 90 per kilogram. Across the country, one kilogram of non-parboiled aromatic rice is now selling for Tk 210, up from around Tk 120 previously.

Earlier, a high-level meeting on the market situation of aromatic rice was held at the Ministry of Commerce on August 2. The meeting, chaired by Commerce Minister Khondker Abdul Muktadir, reviewed rice production, domestic demand, market conditions and the actual export situation.

Based on recommendations from the Ministry of Food, the Ministry of Commerce had earlier approved exports of 45,270 tonnes of aromatic rice for 278 companies. In the first phase, permission was granted to 211 companies on May 13, while another 67 companies received approval in the second phase.

At the August 2 meeting, it was reported that many companies that had received export permission could not export rice according to their approved quotas. Some had exported only a portion of their allocated quantities.

As a result, a significant gap has emerged between the approved export quota and the actual volume exported. The ministry is now collecting updated company-wise export data to determine the extent of the unused quotas.

Meanwhile, traders have alleged that the country's top 10 large rice millers are holding substantial stocks of aromatic rice. They claimed that prices have increased because some millers are allegedly withholding supplies instead of releasing rice according to market demand, thereby creating an artificial shortage.

After reviewing the views of all stakeholders, the Ministry of Commerce has decided to strengthen monitoring to prevent artificial shortages and excessive profiteering in the market.

The ministry has instructed the Directorate of National Consumer Rights Protection and relevant trade organisations to intensify market monitoring.

At the same time, the government will examine whether it is justified to retain unused quotas for companies that obtained export permission but failed to export the approved quantities.

The urgent collection of actual export data is part of this review process. After verifying the information, the government will decide whether the approved export quotas should be reduced or adjusted.

Through the move, the government is seeking to strike a balance between maintaining adequate supplies of aromatic rice in the domestic market and ensuring that genuine exporters continue to have opportunities to export.