Government tightens aromatic rice export as domestic demand, prices soar

The government is tightening measures on aromatic rice exports as demand and prices have risen abnormally in the domestic market. The Ministry of Commerce has initiated steps to review, reduce or adjust previously approved export quotas. To this end, export-permitted companies have been asked to submit details of the actual quantity of aromatic rice exported abroad within the next three working days.

This directive was issued in a letter from the Export-2 branch of the Ministry of Commerce on Thursday.

The ministry's memo stated that considering the current market situation and increased domestic demand for aromatic rice, it is necessary to reduce or adjust previously approved export quantities. Accordingly, permitted companies must submit detailed information on their actual export volumes to the Export-2 branch within the next three working days.

Companies that were unable to export the full permitted quantity or exported only partially may have their unused quotas reviewed.

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

Based on recommendations from the Ministry of Food, the Commerce Ministry initially permitted the export of 45,270 tonnes of aromatic rice to 278 companies — 211 in the first phase on May 13 and 67 in the second. The meeting on August 2 was informed that many of the permitted companies had failed to export their full quotas, and some had exported only partially.

As a result, a significant gap has emerged between approved quotas and actual exports. The ministry is now collecting updated company-wise data on actual exports.

Traders have alleged that large quantities of aromatic rice are stockpiled with the owners of the top 10 major mills. They claimed that prices are rising because sufficient rice is not being released to the market, creating an artificial shortage.

After reviewing all stakeholders' views, the Ministry of Commerce has decided to step up monitoring to curb the tendency to create artificial shortages for excessive profiteering. The National Consumer Rights Protection Directorate and concerned trade bodies have been directed to intensify market monitoring.