Govt halves aromatic rice export quota

The government has halved the aromatic rice export allocations of 278 previously approved exporters amid a sharp rise in domestic prices of the premium rice.

In a notification issued yesterday, the Ministry of Commerce cut each exporter’s approved allocation by 50 percent, meaning no exporter will be allowed to ship more than half of the quantity previously approved.

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The ministry also lowered the minimum free-on-board (FOB) export price to $1.60 per kilogramme.

According to the notification, the revised allocations took effect immediately and will remain valid until December 31.

The government had approved exports of 45,270 tonnes of aromatic rice for the 278 companies in two phases. But by August 30, only 129 exporters had shipped 2,419 tonnes, or about 5.3 percent of the approved volume.

Nearly 42,900 tonnes of the approved quantity therefore remained unshipped as of August 30.

The quota reduction comes as domestic prices of aromatic rice have climbed sharply. The price of Chinigura rose to around Tk 230 per kilogramme in the second week of August from Tk 190 in July, an increase of about 21 percent.

AHM Shafiquzzaman, president of the Consumers Association of Bangladesh, last month questioned the sharp increase in aromatic rice prices, calling it unjustified.

The ministry had been reviewing export allocations as domestic prices increased and had sought details of actual shipments to identify unused quotas.

Under the revised arrangement, the ministry has also imposed 10 conditions aimed at strengthening monitoring and ensuring that export proceeds are repatriated.

Exporters must comply with the Export Policy 2024-27, while customs must verify the quality and authenticity of each shipment before export. Shipping documents must be submitted to the ministry’s Export-2 branch after every consignment.

Companies seeking fresh approval must provide evidence of actual exports against their previous allocations. The allocations are non-transferable, and exporters cannot subcontract shipments or use another company to execute them.

The government may cancel an approval at any time in the public interest without issuing a show-cause notice. Exporters must also submit a Proceeds Realization Certificate to establish that export proceeds have been repatriated.

The simultaneous reduction in export allocations and the minimum FOB price reflects two different policy concerns: limiting the volume of aromatic rice leaving the country while allowing exporters greater flexibility in pricing their overseas shipments.

The ministry says it does not intend to stop aromatic rice exports but wants to keep shipments within controlled limits while ensuring adequate domestic supply and price stability.

Bangladesh resumed aromatic rice exports in 2025, with approvals issued in phases. The latest decision effectively links future export opportunities more closely to actual shipments and compliance with export conditions.

Md Parvez Saiful Islam, CEO of Square Food & Beverage Ltd, said the ministry took the decision primarily to control the rising price of aromatic rice in the domestic market.

He said the permission to export created additional demand in the market, contributing to a sharp rise in domestic prices last month.

Some exporters also stocked aromatic rice for export, further contributing to the price increase, he said.

According to him, Square has already fulfilled its export quota, while most other exporters could not fully utilise their allocations.

He said the latest decision is expected to help control aromatic rice prices in the domestic market.