Govt slashes Aromatic rice quota by 50pc to shield food security

The government has halved the approved export quota for aromatic rice, tightening overseas shipments to safeguard domestic supplies, protect food security and contain the risk of price increases in the local market.

The Export-2 branch of the Ministry of Commerce issued a notification on Tuesday, reducing by 50 per cent the quotas previously allocated to 278 companies. The revised quotas will take effect immediately and remain valid until 31 December 2026.

The 278 exporters had earlier been authorised to ship a combined 45,270 tonnes of aromatic rice in two phases. But by 30 August, only 129 companies had exported 2,419 tonnes, according to the ministry.

The sharp quota reduction signals a more cautious approach by the government as it seeks to ensure that exports do not undermine domestic availability or add to food-price pressures.

The ministry has also imposed 10 conditions to tighten monitoring, improve accountability and ensure the repatriation of export proceeds.

Exporters must comply with the Export Policy 2024-27, while Customs authorities will verify the quality and authenticity of every consignment before shipment. Exporters must submit the required documents to the ministry after shipment and provide evidence of actual exports against previous allocations when seeking fresh approval.

No exporter will be allowed to exceed the revised quota. The government has also fixed a minimum free-on-board (FOB) export price of $1.60 per kilogram, aimed at protecting the value of aromatic rice in international markets and preventing possible under-invoicing.

The approvals are non-transferable, and exporters will not be permitted to ship rice through subcontractors or other entities. The government has reserved the right to cancel any approval at any time in the public interest.

Exporters must also submit Proceeds Realization Certificates (PRCs) as evidence that export earnings have been repatriated to the country.

The government said the move was not intended to stop aromatic rice exports, but to ensure that shipments continue in a controlled and sustainable manner while maintaining domestic food security and market stability.

The decision comes amid continued sensitivity over food prices and domestic supplies. By cutting export quotas and imposing tighter controls on shipments and export earnings, the government is seeking to prevent foreign demand from placing additional pressure on the domestic market.

For exporters, the policy represents a significant tightening of access to overseas markets. For the government, it underscores a clear priority: domestic food security and price stability must come before an unchecked expansion of aromatic rice exports.