Surging domestic prices of fragrant rice have prompted the government to reconsider export allocations, with authorities moving to reduce or adjust previously approved quotas to protect local supply.
The Ministry of Commerce has asked exporters that received approval to submit details of the actual quantity of fragrant rice shipped abroad within three working days, as it begins a review of unused export allocations.
The directive was issued by the ministry’s Export-2 section on Thursday.
The ministry said the review was necessary considering the current market situation, rising domestic demand and supply conditions. Exporters that failed to ship their approved quantities or exported only part of their allocated volumes may lose their unused quotas.
The move follows a high-level meeting on the fragrant rice market held at the Ministry of Commerce on 2 August, where officials reviewed rice production, domestic demand, market trends and the actual export scenario.
Chaired by Commerce Minister Khandkar Abdul Muktadir, the meeting found that many approved exporters had failed to meet their allocated shipment targets, creating a wide gap between approved quotas and actual exports.
Based on recommendations from the Ministry of Food, the government approved fragrant rice exports for 278 companies in two phases this year. The first approval, issued on 13 May, covered 211 companies, while another 67 companies received approval in the second phase.
The total approved export volume was 45,270 tonnes.
However, the meeting found that several companies had either failed to export within their approved limits or had shipped only part of their allocated quantities. The ministry is now collecting company-wise export data to determine whether unused quotas should remain valid.
A final decision on reducing or adjusting export allocations will be taken after verification of the submitted information.
Meanwhile, a section of traders has alleged that some major mill owners are holding large stocks of fragrant rice and restricting market supply, contributing to an artificial shortage and higher prices.
The government has decided to strengthen market monitoring following the allegations. The Directorate of National Consumer Rights Protection and relevant business organisations will be involved in intensified surveillance to prevent artificial shortages and excessive profiteering.
Officials said the move aims to balance two priorities – ensuring adequate supply of fragrant rice in the domestic market while allowing genuine exporters with the capacity to continue overseas shipments.
