The government is closely monitoring the export of aromatic rice in response to a significant surge in domestic prices. Exporters have been instructed to promptly report their shipment details within three working days to enable the commerce ministry to reassess approved quotas based on the current market conditions.
Data from the Department of Agricultural Marketing (DAM) shows that the price of BRRI Dhan-34, a popular fragrant rice variety, has increased by 13% over the past month, reaching Tk 140-210 per kilogram in Dhaka. This represents a significant 63% jump compared to prices a year ago when the same variety was selling at Tk 90-125 per kilogram.
Similarly, Chinigura, another aromatic rice type, has seen a price hike to Tk 230 per kilogram from Tk 190 just two weeks ago, marking a 21% increase as reported by various grocery store owners in the capital.
Given the escalating prices and concerns over market manipulation, the ministry is considering revising the approved export quotas to align with the domestic demand. Exporters are urged to provide accurate shipment data to assess the utilization of their allocated quotas.
Authorities had initially approved the export of 45,270 tonnes of aromatic rice for 278 companies in two phases. However, a review revealed that some exporters failed to fulfill their quota obligations, prompting the government to consider adjustments based on the actual market conditions.
In response to allegations of stock hoarding by certain large millers leading to price inflation, the government is intensifying market surveillance in collaboration with the Directorate of National Consumer Rights Protection and relevant industry bodies.
AHM Shafiuzzaman, president of the Consumers Association of Bangladesh (CAB), criticized the unjustified price hike in aromatic rice, emphasizing that the limited export volume sanctioned by the government does not justify the steep price surge in the domestic market. He called for a thorough evaluation of the impact of exports on producers and consumers and proposed exploring measures such as suspending exports to stabilize prices.
Shafiuzzaman highlighted the need for the government to address the significant price increases in packaged rice, emphasizing the impact on consumers. He urged authorities to consider the implications of imposing restrictions on aromatic rice exports to alleviate the burden on consumers and prevent market exploitation by businesses.