Government reduces fragrant rice export quota by 50 percent, adds 10 mandatory conditions

Government reduces fragrant rice export quota by 50 percent, adds 10 mandatory conditions

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The government has reduced the permitted quota for fragrant rice exports by 50 percent to maintain normal supply of rice in the domestic market, ensure food security and control potential price pressures. A notification issued by the Export-2 Branch of the Ministry of Commerce said that the quantity of fragrant rice allocated to 278 exporting companies that were previously approved has been reduced by half.

The revised allocation will be effective immediately and the approval period will remain in force until December 31, 2026. Under the revised system, medium and small exporters, including large food processing companies, will also not be able to export fragrant rice more than the newly determined quantity.

In addition to reducing the quota, 10 mandatory conditions have been imposed to ensure monitoring, accountability and repatriation of export earnings in the country. As per the conditions, exporters will have to properly follow the provisions of the Export Policy 2024-27. The relevant approval will be effective until December 31, 2026.

Before each shipment is exported, the customs authorities will verify the quality and authenticity of the product. After shipping, the relevant documents will have to be submitted to the Export-2 branch of the Ministry of Commerce.

In the future, if you apply for a new export permit, you will have to submit complete information and evidence of actual exports against the previously approved quota. No exporter will be able to export more than the revised approved quantity of fragrant rice.

To protect the price of the product in the international market, the minimum FOB (Free on Board) export price of fragrant rice has been set at US $ 1.60 per kg. The export permit has been made completely non-transferable. Exports cannot be made through subcontracting or any other organization. The government can cancel the permit at any time in the public interest without giving any reason.

In addition, exporters will have to submit PRC as proof of repatriation of export proceeds to the country.

Earlier, the Ministry of Commerce had allowed the export of a total of 45,270 metric tons of fragrant rice in favor of 278 organizations in two phases. As of August 30 this year, 129 companies have exported a total of 2,419 metric tons of fragrant rice against the approved allocation.

The government's policy position is that while earning foreign exchange through exports is important, priority should be given to adequate supply and price stability in the domestic market for food products. In view of this, in addition to reducing the export quota for fragrant rice by 50 percent, strict conditions have been imposed on export value, quantity, documentation and foreign exchange repatriation.

Under the new system, exporters will have to operate within the approved limits. In the future, a full account of previous export activities will have to be given in case of new approvals. The government hopes that this will strengthen control over fragrant rice exports as well as increase transparency and accountability in export management.

The government said that the aim of this initiative is not to completely stop the export of fragrant rice, but to operate export activities in a controlled and sustainable manner while maintaining the country's food security and the stability of the domestic market.

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Source: Online/GFMM