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The government has moved to reduce or adjust previously approved export quotas for fragrant rice amid a sharp rise in its domestic demand and prices.
The Ministry of Commerce has asked exporters who were granted permission to export fragrant rice to submit details of the actual quantities they have exported within three working days, said a press release.
A letter issued today by the Export-2 Branch of the Ministry of Commerce said the decision was taken considering the current market situation and increased domestic demand for fragrant rice.
The ministry said it is necessary to reduce or adjust the quantities approved earlier for export based on the domestic market situation.
The information sought from exporters will help the authorities determine how much of the approved quota has actually been utilised.
The unused portion of quotas granted to companies that could not export the approved quantities, or exported only part of their allocations, may come under review.
Earlier, a high-level meeting on the fragrant rice market situation was held at the Ministry of Commerce on August 2.
Commerce Minister Khandakar Abdul Muktadir chaired the meeting, where the production, domestic demand, market situation and actual export scenario of fragrant rice were reviewed.
Based on recommendations from the Ministry of Food, the Ministry of Commerce had initially approved exports of 45,270 tonnes of fragrant rice for 278 companies.
Of them, 211 companies received approval in the first phase on May 13, while another 67 companies received approval in the second phase.
At the August 2 meeting, it was reported that many of the companies granted export permission had failed to export rice according to their approved quotas, while some had exported only part of their allocations.
As a result, a significant gap has emerged between the approved export quotas and the actual quantities exported. The ministry is now collecting updated company-wise export data to assess the situation.
Business representatives at the meeting alleged that a large quantity of fragrant rice was being stockpiled by the country's top 10 millers.
They claimed that prices were rising as some millers were allegedly withholding stocks instead of releasing rice according to market demand.
Following discussions with stakeholders, the Ministry of Commerce decided to strengthen market monitoring to prevent artificial shortages and excessive profiteering.
The Directorate of National Consumer Rights Protection (DNCRP) and relevant business organisations have also been asked to intensify market monitoring.
The government will also review whether it is justified to retain unused export quotas for companies that failed to export their approved quantities.
After verifying the information submitted by the exporters, the government will take a decision on reducing or adjusting the approved export quotas.
The move is aimed at maintaining a normal supply of fragrant rice in the domestic market while ensuring that genuine and capable exporters continue to have opportunities to export, officials said.
