Govt moves to cut aromatic rice exports after abnormal price surge
Over the past two months, prices of different varieties of aromatic rice, including Chinigura, have risen from around Tk130 per kg to Tk230 per kg.
The government is moving to tighten controls on aromatic rice exports after an abnormal rise in domestic demand and prices.
The Ministry of Commerce has initiated a review of previously approved export quotas with a view to reducing or adjusting them.
To this end, firms that received permission to export aromatic rice have been asked to submit, within the next three working days, details of the actual volume they have exported.
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The instruction was issued today (13 August) in a letter from the Export-2 Wing of the commerce ministry.
Over the past two months, prices of different varieties of aromatic rice, including Chinigura, have risen from around Tk130 per kg to Tk230 per kg.
Retailers say supplies of aromatic rice have also declined at many shops. Against this backdrop, the commerce ministry has moved to impose tighter controls on exports.
In its directive, the ministry said the amount of previously approved exports needs to be reduced or adjusted considering the current market situation and increased domestic demand for aromatic rice.
The approved exporters have therefore been asked to submit detailed information on their actual export volumes within three working days.
The ministry Public Relations Officer Md Kamal Hossain said the unused quotas of firms that failed to export their full approved amount, or exported only part of it, may mainly come under review.
Earlier, on 2 August, a high-level meeting on the aromatic rice market was held at the commerce ministry conference room.
The meeting, chaired by Commerce Minister Khandaker Abdul Muktadir, reviewed rice production, domestic demand, market conditions and the actual export situation.
Based on recommendations from the food ministry, the commerce ministry had initially permitted 211 firms on 13 May and another 67 firms in a second phase to export a total of 45,270 tonnes of aromatic rice.
Many of the approved firms, however, could not export the full amount allocated under their quotas.
In a press release, the commerce ministry said traders claimed that the country's 10 largest mill owners were holding substantial stocks of aromatic rice.
They alleged that prices had risen because enough rice was not being released into the market, creating an artificial shortage.
