Govt cuts aromatic rice export quota by 50pc
The government has cut the approved quota for aromatic rice exports by 50% to maintain normal rice supplies in the domestic market, ensure food security and contain potential price pressures.
According to a notification issued by the Export-2 Branch of the Ministry of Commerce, the quantities previously allocated to 278 approved exporters have been reduced by half. The revised allocations have taken immediate effect and will remain valid until December 31, 2026.
Under the new arrangement, large food-processing companies as well as medium- and small-scale exporters will not be allowed to export more than half of their previously approved quantities.
Alongside the quota reduction, the Ministry of Commerce has imposed 10 conditions to strengthen monitoring, accountability and repatriation of export proceeds.
Exporters must comply with the provisions of the Export Policy 2024–27. The approvals will remain valid until December 31, 2026. Customs authorities will verify the quality and authenticity of the product before each shipment is exported.
Relevant documents must be submitted to the Export-2 Branch of the Ministry of Commerce after each consignment is shipped. Exporters seeking new approvals in the future must provide complete information and supporting documents on actual exports against their previous quotas.
Exporters cannot ship rice beyond their revised approved quantities under any circumstances. To protect the product’s price in the international market, a minimum FOB export price of $1.60 per kg has been fixed.
The approvals are strictly non-transferable, and exports cannot be carried out through subcontractors or other companies.
The government may cancel an approval at any time in the public interest without showing cause. Exporters must also submit a Proceeds Realization Certificate (PRC) as proof that export earnings have been repatriated to the country.
The Ministry of Commerce had earlier allowed 278 companies to export a total of 45,270 tonnes of aromatic rice in two phases. As of August 30, however, only 129 companies had exported a combined 2,419 tonnes of aromatic rice, according to the ministry.
The government’s policy position is that although earning foreign currency through exports is important, domestic supply and price stability should take priority in the case of food commodities.
Against this backdrop, the government has reduced the approved export quota for aromatic rice by 50% and introduced stricter conditions on export prices, quantities, documentation and repatriation of export proceeds.
Under the new system, exporters will have to operate within their approved limits and provide a complete account of their previous export activities when seeking future approvals.
The move is expected to strengthen controls over aromatic rice exports while improving transparency and accountability in export management.
The government said the objective is not to halt aromatic rice exports altogether, but to ensure that exports are conducted in a controlled and sustainable manner while maintaining food security and market stability at home.
