Govt approves second phase of 5,800 tonnes aromatic rice exports
The minimum export price has been set at $1.60 per kg, equivalent to Tk196.80
The government has approved the export of 5,800 tonnes of aromatic rice in a second phase, allowing 52 companies to export.
A circular from the Ministry of Commerce on Wednesday (28 May) said each company can export between 100 and 200 tonnes. All shipments must be completed by 30 November.
The minimum export price is set at $1.60 per kg, which equals Tk196.80.
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Earlier, on 8 April, the ministry gave permission to 133 firms to export 18,150 tonnes of aromatic rice. The deadline for that batch was 30 September.
The circular also said exporters must submit all related export documents to the Export-2 Wing of the Ministry of Commerce after each shipment. When applying for new export permits, companies must show proof of exports made under earlier approvals. Exporters cannot exceed the approved export quantity.
Additionally, the permission is non-transferable, and exporters are not allowed to subcontract their exports to third parties.
A senior official at the commerce ministry said, "Production of aromatic rice has increased in the country. For a long time, exporters have been requesting permission to export. In the absence of such approval, there were allegations of smuggling aromatic rice into neighbouring countries. As part of diversifying export earnings, the government has decided to allow the export."
According to the Ministry of Food, Bangladesh produced 1.023 million tonnes of aromatic rice in FY2023-24, almost double the 579,000 tonnes produced in FY2017-18.
Stakeholders say rising domestic demand has encouraged farmers to grow more aromatic rice. According to the Bangladesh Rice Research Institute, 33 varieties of aromatic rice are currently being cultivated across the country.
Data from the Export Promotion Bureau shows Bangladesh earned $2.88 million from aromatic rice exports in FY2019-20. But the earnings dropped to $2.06 million in FY2020-21 and further to $1.07 million in FY2021-22. The government then suspended all aromatic rice exports during FY2022-23.
As a result, no exports happened until December of the current fiscal year 2024-25. The government resumed approvals in January, after which several hundred companies applied for export permits.
