The government has moved to reduce or adjust previously approved export quotas for aromatic rice amid an unusual rise in domestic demand and prices.
The Ministry of Commerce has asked exporters who received permission to ship aromatic rice to submit details of the actual quantity they exported within three working days.
The Export-2 branch of the ministry issued the instruction in a letter on Thursday, citing the current market situation and increased domestic demand for aromatic rice.
The ministry said the previously approved export quantities needed to be reduced or adjusted considering the domestic market situation.
Exporters have therefore been asked to submit detailed information on their actual exports to the Export-2 branch within three working days.
The unused quotas of companies that failed to export their approved quantities or exported only part of their allocations are likely to come under review.
Earlier, a high-level meeting was held at the Ministry of Commerce on August 2 to review the market situation of aromatic rice.
The meeting, chaired by Commerce Minister Khandker Abdul Muktadir, reviewed rice production, domestic demand, market conditions and the actual volume of exports.
Based on recommendations from the Ministry of Food, the Ministry of Commerce approved exports of 45,270 tonnes of aromatic rice for 278 companies in two phases.
The ministry approved export permits for 211 companies for 27,850 tonnes on May 13, followed by permits for another 67 companies covering 17,420 tonnes.
The August 2 meeting was informed that many of the companies had failed to export their full approved quotas, while some had exported only part of their allocations.
As a result, there is a significant gap between the approved export quotas and actual shipments.
The ministry is now collecting updated, company-wise export data to assess the situation.
Business representatives at the meeting alleged that the country’s top 10 large millers were holding substantial stocks of aromatic rice.
They alleged that prices had risen because some millers were withholding supplies from the market, creating an artificial shortage.
After reviewing the views of stakeholders, the Ministry of Commerce decided to strengthen market monitoring to prevent artificial shortages and excessive profiteering.
The Directorate of National Consumer Rights Protection and relevant business associations have been instructed to strengthen market surveillance.
The government will also examine whether it is justified to retain unused export quotas for companies that received approval but failed to ship the allotted quantities.
The ministry has sought the actual export data from the companies on an urgent basis for this assessment.
After verifying the information, the government will decide whether to reduce or adjust the approved export quotas.
