Government Set to Reduce Aromatic Rice Export Quotas

In response to abnormal price hikes and surging domestic demand, the government has adopted a strict stance on aromatic rice exports. The Ministry of Commerce has initiated steps to review and reduce or adjust previously approved export quotas for aromatic rice.

To this end, companies holding export permits have been directed to submit updated data on their actual exports within the next three working days.

A letter issued on Thursday (August 13) by the Export-2 branch of the Ministry of Commerce outlined the urgent directives.

The letter noted that considering current market conditions and rising domestic demand, it is necessary to decrease or adjust previously authorized export quantities.

According to ministry sources, unused quotas held by companies that received export approvals but failed to ship the designated quantities or sent only partial shipments may be canceled or reduced. Final decisions regarding quota reductions or reallocations will follow after verifying the submitted data.

Earlier on August 2, a high-level meeting chaired by Commerce Minister Khandaker Abdul Muktadir discussed the aromatic rice market situation. Following recommendations from the Ministry of Food, export permits for a total of 45,270 tonnes of aromatic rice had been granted to 278 companies in two phases (211 companies in the first phase and 67 in the second).

However, several companies failed to export their allocated quotas.

During the meeting, business representatives alleged that a few leading mill owners were hoarding large quantities of aromatic rice to create an artificial crisis and inflate prices.

In light of these allegations, the government decided to strengthen market monitoring operations through the Directorate of National Consumer Rights Protection (DNCRP) in coordination with trade associations. The government expects these measures to stabilize supply and control prices in the domestic market.