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The Bangladesh Trade and Tariff Commission will hold a meeting with agro- processors today (Sunday) to discuss the issue of rice exports, according to an official from the Commission.
Following the indefinite ban on all types of rice exports, including aromatic varieties, since October, agro-processors have recently urged the government to resume shipments to capture the international market.
The Bangladesh Agro Processors Association (BAPA) sent a letter to the commerce ministry regarding this issue.
The letter mentioned that the 'Food Planning and Monitoring Committee' meeting of the Cabinet Division on October 8, 2023, and the Ministry of Agriculture's decision from the meeting on September 10, 2023, the export of fragrant rice from the country has been halted.
Due to this suspension, other processed agricultural product exports have also declined, as foreign buyers place bulk orders for other processed agricultural products along with aromatic grain.
The halt in fragrant rice exports is adversely affecting these orders and could lead to a decrease in overall export levels, said BAPA.
BAPA informed that in a related matter, a letter was sent to the Food ministry in June 2024 regarding this issue.
Citing data from the Bangladesh Bureau of Statistics, BAPA said Bangladesh produced a total of 3.91 million tonnes of rice in the financial year 2022-23.
BAPA also claimed rice production exceeds domestic demand, with a higher preference for fine aromatic rice over coarse rice.
The Association said this presents an opportunity to enhance foreign exchange earnings by exporting locally produced fragrant rice.
Chief Operating Officer at Square Food and Beverage Parvez Saiful Islam, one of the leading exporters, told the FE that companies could get US $1500-1600 per tonne of chinigura rice.
Saiful said his company got a permit for 3,000 tonnes in 2023 but could send only 200 tonnes as the government stopped exports in October.
Director at Pran RFL, another leading exporter, Kamruzzaman Kamal said Bangladeshi aromatic rice has great potential in the global market.
He said South Asian people in Europe, North America, Middle-East, Malaysia, Singapore, and elsewhere in the globe have started to like Chinigura rice.
"We might lose the market if we remain absent for a long time in the global market," he said. He said Bangladesh produces a large amount of aromatic rice from which the country could export a handsome volume.
Farm economist and value chain expert Prof. Golam Hafeez Kennedy said the market for both fragrant and daily intake rice is much higher now.
He said a few companies have raised prices of finer rice to its peak as consumers are paying Tk 160-180 a kg for branded kalijeera and chinigura rice.
He said daily eating rice has also witnessed a 12-15 per cent hike in the last four months, battering the consumers.
He said the flood has brought devastation this year as over 0.4 million hectares of Aman land has been damaged, which should be taken into consideration.
Global rice prices are static, but Bangladesh will have to spend at least US $530 per tonne (Tk 67 a kg minimum) coarse rice, he said.
He urged the Tariff Commission to consider the flood and make any decision over exports after the completion of the harvest in December, which could clarify the local production situation.
A BTTC senior official said that the issue will be analysed based on facts, and the Commission will send its observations to the commerce ministry afterward.
He said topics for discussion may include the stock of both aromatic and daily eating rice, price trends in domestic and international markets, and potential upcoming production, among other relevant issues.