The government is tightening aromatic rice exports as domestic demand and prices have risen abnormally. The commerce ministry has moved to review the export quotas it approved earlier and reduce or adjust them.

To that end, the firms permitted to export have been asked to submit, within the next three working days, how much aromatic rice they have actually shipped abroad. The instruction came in a letter issued by the ministry's Export-2 branch on Thursday, 13 August.

The letter says that given the current market situation and rising domestic demand for aromatic rice, the export permissions granted earlier need to be reduced or adjusted. Permitted firms must therefore submit details of their actual exports to the Export-2 branch within three working days.

Mainly, the unused quotas of firms that could not export the allotted amount of aromatic rice after getting permission, or exported only part of it, may come under review.

Earlier, on 2 August, a high-level meeting on the aromatic rice market was held in the commerce ministry's conference room. Chaired by Commerce Minister Khandaker Abdul Muktadir, it reviewed rice production, domestic demand, the market situation and the real picture of exports.

On the food ministry's recommendation, the commerce ministry permitted 278 firms to export 45,270 tonnes of aromatic rice: 211 in the first round on 13 May and 67 in the second. The 2 August meeting was told that many of the permitted firms had not been able to export according to their quotas, and some had exported only part.

This has left a large gap between approved quotas and actual exports, which is why the ministry is collecting updated firm-by-firm export data.

Traders at the meeting claimed that the country's top 10 large mill owners hold huge stocks of aromatic rice, and alleged that prices are rising because they are creating an artificial shortage by not releasing rice to the market as needed.

After reviewing all sides, the commerce ministry decided on strict oversight to stop the practice of creating artificial shortages for excess profit. The Directorate of National Consumer Rights Protection and the relevant trade bodies have been told to step up market monitoring.

The government will also review whether it makes sense to keep the unused quotas of those who got permission but could not export the set amount, which is why it has urgently asked the firms for their actual export figures.

Once the data are verified, a decision will be taken on cutting or adjusting the approved export quotas. Through this, the government is trying to strike a balance between keeping domestic supply of aromatic rice normal and preserving opportunities for genuinely capable exporters.

Source: Jagonews24. First published in Bengali on The Agro News.