Central bank ends subsidy in fragrant rice export
The Bangladesh Bank did not state any reason for the decision in the circular
The central bank has directed banks to end a 15% cash incentive to fragrant rice exporters.
Subsidies for other rice exporters, however, will be continued, the Bangladesh Bank said in a circular issued on Monday.
The bank did not state any reason for the decision in the circular.
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The government introduced a 15% cash subsidy last year to rice exporters for the first time in the country's history with the view to encouraging shipment of the surplus grain.
According to a central bank directive in this regard, in an earlier directive issued on 30 January 2020, the central bank introduced the financial aid offers to rice exporters.
Millers, who process rice from locally grown paddy, will be eligible for the cash subsidy on their earnings from export, according to a central bank directive issued at the time.
