Conditions for exporting fragrant rice are getting stricter

Conditions for exporting fragrant rice are getting stricter

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The government is tightening the export of fragrant rice due to the abnormal increase in demand and price of fragrant rice in the domestic market. The Ministry of Commerce has taken the initiative to reconsider the previously approved export quota and reduce or adjust it.

To this end, the companies that have been allowed to export fragrant rice have been instructed to submit detailed information on the amount of rice they have actually exported abroad within the next three working days.

This instruction was given in a letter issued by the Export-2 Branch of the Ministry of Commerce on Thursday (August 13, 2026). The letter states that it is necessary to reduce or adjust the amount of export approval previously given, taking into account the current market situation of fragrant rice and the increase in domestic demand.

For this, the permitted companies will have to submit detailed information on their actual export volume to the Export-2 Branch of the Ministry within the next 3 working days.

Basically, the companies that have not been able to export the specified amount of fragrant rice or have partially exported it even after receiving the permission, may have their unused quotas reconsidered as a result of this instruction.

Earlier, a high-level meeting was held on August 2 at the conference room of the Ministry of Commerce on the market situation of fragrant rice. The meeting, chaired by Commerce Minister Khandaker Abdul Muktadir, reviewed the actual picture of rice production, domestic demand, market situation and exports.

Based on the recommendation of the Food Ministry, the Ministry of Commerce has allowed the export of 45,270 tons of fragrant rice in favor of a total of 278 institutions, including 211 in the first phase on May 13 and 67 in the second phase. In the meeting held on August 2, it was informed that many institutions that received permission could not export rice according to their assigned quota. Some institutions have partially exported. As a result, there has been a big gap between the approved quota and the actual export. That is why the Ministry of Commerce is collecting updated information on actual export by institution.

At the meeting, traders claimed that the top 10 large mill owners of the country have a huge amount of fragrant rice in stock. They also alleged that the price increase is due to the creation of an artificial crisis by not releasing rice as needed in the market.

In continuation of this, after reviewing the statements of all parties, the Ministry of Commerce has decided to strictly monitor the market to prevent the tendency to create artificial crises and make excessive profits. In the meantime, the National Consumer Rights Protection Department and the relevant business organizations have been instructed to further strengthen market monitoring. Along with this, the government will also review the rationale for maintaining the unused quota of those who could not export the specified amount of fragrant rice abroad despite receiving export permission. For this reason, actual export information has been requested from the institutions on an urgent basis.

After verifying this information, the next decision will be taken on reducing or adjusting the approved export quota. Through this, the government is trying to strike a balance between maintaining the normal supply of fragrant rice in the domestic market on the one hand and continuing the opportunities for truly capable exporters on the other.

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Source: Online/GFMM