Govt tightens watch on aromatic rice exports

The government is tightening its watch on aromatic rice exports as domestic prices rise sharply, asking exporters to report their actual shipments so that unused quotas can be reviewed.

The commerce ministry yesterday directed exporters to submit details of their shipments within three working days. The information will help the ministry reduce or adjust approved quotas in light of the domestic market situation.

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Over the past month, the price of BRRI Dhan-34, a fragrant rice variety, rose 13 percent to Tk 140-210 per kilogramme in Dhaka, according to price data compiled by the Department of Agricultural Marketing (DAM).

The price was also 63 percent higher than a year earlier, when the variety sold for Tk 90-125 per kilogramme.

Meanwhile, Chinigura, another aromatic rice variety, has risen to Tk 230 per kilogramme from Tk 190 two weeks ago, a 21 percent increase, according to several grocery shopkeepers in the capital.

The ministry said the quantity approved for export might need to be reduced or adjusted in response to the domestic market situation.

Exporters have therefore been asked to provide their actual shipment figures so the ministry can assess how much of their approved quotas remains unused.

The move is particularly relevant for companies that failed to export their full approved quantities or made only partial shipments. Their unused quotas could now come under review.

The government had earlier approved the export of 45,270 tonnes of aromatic rice for 278 companies in two phases, according to officials. Of these, 211 companies received approval in the first phase and 67 in the second.

At a meeting on August 2, authorities reviewed production, domestic demand, market conditions and the actual volume of aromatic rice exported. They found that several approved exporters had been unable to ship their full quotas.

The government is also stepping up market monitoring amid allegations from traders that some large millers are holding significant stocks of aromatic rice and releasing less than the market requires, contributing to higher prices.

After reviewing the situation, the commerce ministry decided to strengthen monitoring with the Directorate of National Consumer Rights Protection and relevant business organisations.

The latest data from exporters will help the ministry determine whether existing export quotas should be reduced or adjusted, while allowing companies with genuine export capacity to continue operating.

AHM Shafiuzzaman, president of the Consumers Association of Bangladesh (CAB), said the recent Tk 60-70 increase in the price of aromatic rice was unjustified, especially as the export volume allowed by the government was relatively small compared with domestic production and consumption.

“The first thing is that raising the price by Tk 60 to Tk 70 is simply unjust,” he said.

Shafiuzzaman said Bangladesh produces around 20,000 tonnes of aromatic rice annually, while the export orders approved by the government account for only a small share of the market.

He said the government should assess whether allowing exports has actually benefited producers and consumers, and whether suspending exports would help bring prices down.

“If the government promotes exports, Bangladeshis living abroad can consume our aromatic rice and earn dollars for the country. But businesses should not be allowed to use the export permission as an excuse to raise prices in the domestic market,” he said.

He also questioned the sharp rise in the price of packaged rice. According to him, a variety that was selling for around Tk 140-170 a few months ago is now being sold at about Tk 240 after being packaged by large groups.

“This price increase of Tk 60, Tk 70 or even Tk 80 needs to be addressed,” Shafiuzzaman said.

He urged the government to examine whether a ban or restriction on aromatic rice exports would bring prices down. Without such an assessment, he said, consumers would continue to bear the burden while businesses take advantage of the situation.