Govt halves aromatic rice export quota

The government has halved the export quota for aromatic rice as domestic prices of the premium grain have surged in recent weeks.  

In a notification issued today, the Ministry of Commerce reduced the allocations of 278 previously approved exporters by 50 percent.  

Tap here to add The Daily Star as a trusted source

The revised quotas took effect immediately and will remain valid until December 31 this year, according to a press release.  

The move comes in the wake of sharp price spikes in local markets. Chinigura rice prices rose nearly 21 percent to Tk 230 per kg in the second week of August from Tk 190 in July.  

Prior to the cut, the government had approved the export of 45,270 tonnes of aromatic rice across two phases for the 278 trading firms.  

However, official data shows that by August 30, only 129 exporters had actually shipped grain, totaling 2,419 tonnes -- just over 5 percent of the total approved volume.  

In August, the government directed exporters to submit shipment data within three working days to adjust approved aromatic rice quotas amid sharp domestic price hikes and market monitoring.

Under the new order, no exporter will be allowed to ship more than half of their original allocation.  

To enforce the restriction and prevent capital flight, the ministry imposed a series of strict compliance terms. Key conditions require exporters to adhere to the Export Policy 2024-27, while customs authorities must verify the quality and authenticity of each shipment prior to departure.  

Exporters are also required to submit shipping documents to the ministry's Export-2 branch following every consignment and produce a Proceeds Realisation Certificate (PRC) to prove that export earnings have been repatriated.  

Additionally, the approvals remain non-transferable, prohibiting companies from subcontracting shipments or utilising third-party entities.  

The government retained the right to cancel any export authorisation at any time in the public interest without issuing a show-cause notice.