The government moved to reduce or adjust previously approved export quotas for fragrant rice amid a sharp rise in domestic demand and prices on Thursday.
The Ministry of Commerce asked exporters granted permission to export fragrant rice to submit details of the actual quantities they have exported within three working days, according to a press release.
A letter issued by the Export-2 Branch of the ministry said the decision was taken in view of the current market situation and increased domestic demand for fragrant rice.
The ministry said it is necessary to reduce or adjust the quantities approved earlier for export based on the domestic market situation.
The information submitted by exporters will help the authorities determine how much of their approved quotas have actually been utilised. Unused quotas allocated to companies that failed to export the approved quantities, or exported only part of their allocations, may subsequently be reviewed.
A high-level meeting on the fragrant rice market situation was held at the Ministry of Commerce on August 2, chaired by Commerce Minister Khandakar Abdul Muktadir.
The meeting reviewed the production, domestic demand, market situation and actual export scenario of fragrant rice.
Based on recommendations from the Ministry of Food, the Ministry of Commerce had initially approved the export of 45,270 tonnes of fragrant rice for 278 companies.
Of these, 211 companies received approval in the first phase on May 13, while another 67 companies were approved in the second phase.
At the meeting, it was reported that many companies granted export permission had failed to export rice according to their approved quotas, while some had exported only part of their allocations.
As a result, a significant gap has emerged between the approved export quotas and the actual quantities exported. The ministry is now collecting updated company-wise export data to assess the extent of the gap.
Business representatives at the meeting alleged that a large quantity of fragrant rice was being stockpiled by the country’s top 10 millers.
They claimed that prices were rising as some millers were allegedly withholding stocks instead of releasing rice in line with market demand.
Following discussions with stakeholders, the Ministry of Commerce decided to strengthen market monitoring to prevent artificial shortages and excessive profiteering.
The Directorate of National Consumer Rights Protection (DNCRP) and relevant business organisations have also been asked to intensify monitoring of the market.
The government will review whether unused export quotas should be retained for companies that failed to export their approved quantities.
After verifying the information submitted by exporters, the government will decide whether to reduce or adjust the approved export quotas.
Officials said the move aims to maintain a normal supply of fragrant rice in the domestic market while ensuring that genuine and capable exporters continue to have opportunities to export.