Government halves fragrant rice export quota, imposes 10 mandatory conditions

The government has reduced the permitted quota for fragrant rice exports by 50 percent to keep domestic rice supply normal, ensure food security and control potential price pressure. Ten mandatory conditions have been imposed, including minimum price, quality verification, document preservation and repatriation of export earnings.

The decision was announced in a notification issued by the Export-2 Branch of the Ministry of Commerce on Tuesday. The quantity of fragrant rice export for 278 previously approved establishments has been reduced to half. The revised allocation takes immediate effect and will remain valid until December 31, 2026.

According to the new decision, no exporter—from large food processors to medium and small exporters—can export more than the previously approved quantity.

The conditions imposed on exports include following the Export Policy 2024-27 properly, verifying the quality and authenticity of each consignment through customs authorities before export, and submitting relevant documents to the Export-2 Branch of the Ministry of Commerce after shipment.

Additionally, if applying for new export approvals in the future, full information and evidence of actual exports against the previously approved quota must be provided. Rice cannot be exported in any quantity exceeding the revised approved amount.

To protect product prices in the international market, the minimum FOB export price for fragrant rice has been set at US$1.60 per kg. As the approval is entirely non-transferable, there is no scope for export through sub-contracts or any other entity.

The notification further stated that the government may cancel any approval without assigning any reason in the public interest at any time. Additionally, submitting a Proceeds Realisation Certificate (PRC) as proof of repatriation of export earnings has been made mandatory.

Earlier, the Ministry of Commerce had permitted a total of 45,270 metric tonnes of fragrant rice export in favour of 278 establishments in two phases. However, until August 30, only 129 establishments had been able to export 2,419 metric tonnes of fragrant rice.

The government's policy position is that while earning foreign currency from exports is important, in the case of food items, domestic market supply and price stability must be given priority. Considering that, the quota for fragrant rice exports has been reduced, and strictness has been imposed on quantity, price, documentation and repatriation of foreign currency.

The aim of this government initiative is not to stop fragrant rice exports completely, but to conduct export activities in a controlled manner while maintaining the country's food security and market stability.