Initiatives to reduce aromatic rice export approvals; government seeks export data within three days

The directive was given in a letter issued from the Export-2 Branch of the Ministry of Commerce on Thursday (August 13).

The ministry's memorandum said, considering the current market situation of aromatic rice and the increase in domestic demand, it is necessary to reduce or adjust the quantity of previously granted export approvals. For this, the approved companies have been asked to submit detailed information on their actual export volume to the Export-2 Branch within the next three working days.

In essence, those companies that were unable to export the designated quantity of rice even after obtaining permission, or exported only partially, their unused quotas may come under review.

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

Based on the recommendation of the Ministry of Food, the Ministry of Commerce initially allowed 211 companies in the first phase and 67 in the second phase — a total of 278 companies to export 45,270 tonnes of aromatic rice. However, at the August 2 meeting it was informed that many of the permitted companies could not export rice according to their designated quotas, and some exported only partially. As a result, a large gap was created between approved quota and actual export. That is why the ministry is collecting updated company-wise information on actual exports.

From the business side, it was claimed that the owners of the country's top 10 large mills have huge stocks of aromatic rice. They alleged that the price hike is happening because of creating an artificial crisis by not releasing rice to the market as needed.

After reviewing all sides' views, the Ministry of Commerce has decided to conduct strict monitoring to prevent the tendency to make extra profit by creating an artificial crisis in the market. The National Consumer Rights Protection Directorate and concerned business associations have been instructed to strengthen market monitoring further.

At the same time, the government will review the justification of keeping unused quotas of those who were given export permission but could not export the designated amount of rice. For this reason, actual export information has been urgently sought from the companies.

After verifying this information, the next decision will be taken on reducing or adjusting approved export quotas. In this way, the government is trying to balance maintaining the supply of aromatic rice in the domestic market on one hand and continuing opportunities for genuinely capable exporters on the other.