Govt cuts fragrant rice export quota by 50%

The government has tightened restrictions on aromatic rice exports as rising domestic demand and prices raise concerns over local supply.

In a notification issued by the Commerce Ministry's Export-2 branch, the government cut the approved export quota for fragrant rice by 50% to ensure regular domestic supply.

The ministry halved the previously approved allocations for 278 exporters. The revised quotas take effect immediately, while the approvals will remain valid until 31 December 2026.

Under the new arrangement, large food-processing companies and medium- and small-scale exporters will be allowed to export no more than half of their previously approved quantities.

The commerce ministry had earlier approved the export of 45,270 tonnes of fragrant rice for 278 companies in two phases. As of 30 August 2026, 129 of the companies had exported a total of 2,419 tonnes.

10 mandatory conditions for exports

Alongside the quota cut, the ministry imposed 10 mandatory conditions to strengthen oversight, accountability and the repatriation of export earnings.

Exporters must comply with the Export Policy 2024-27, while customs authorities will verify the quality and authenticity of the rice before each shipment. Exporters must also submit relevant documents to the ministry's Export-2 branch after each consignment is shipped.

Applicants seeking new export approvals must provide complete information and evidence of actual exports against their previously approved quotas. They will not be allowed to exceed their revised quotas under any circumstances.

To protect the product's international market price, the government has set a minimum FOB (Free on Board) export price of $1.60 per kilogramme.

The approvals are non-transferable, and exports cannot be carried out through subcontractors or other companies. The government may also cancel any approval at any time in the public interest without prior notice or explanation.

Exporters must submit a Proceeds Realisation Certificate (PRC) as proof that export earnings have been repatriated to Bangladesh.

The government said earning foreign currency through exports remains important, but ensuring domestic food supply and price stability must take priority.

Against this backdrop, it has reduced fragrant rice export quotas by 50% and tightened conditions on export prices, quantities, documentation and repatriation of earnings.

The government said the move is not intended to halt fragrant rice exports but to ensure they are conducted in a controlled and sustainable manner while safeguarding domestic food security and market stability.