The interim government may lift the ban on exports of fragrant rice to increase revenue and address the long-standing demand of the country's business community to boost trade and enhance export earnings.

A senior official of the Ministry of Food told The Daily Star on Sunday that local traders reported significant quantities of aromatic rice are being smuggled from Bangladesh to India.

"Some Indian exporters are then exporting this rice to other countries using their own branding, causing Bangladesh to lose its market," the official said, adding that local traders claim the current production of rice exceeds domestic demand.

There is significant demand for aromatic rice among non-resident Bangladeshis and people of Bangladeshi origin worldwide, according to exporters.

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Government data indicates there are 7.5 million Bangladeshis living abroad, but if immigrants are included, the total reaches 9 to 10 million.

Additionally, people with South Asian and Middle Eastern backgrounds are also major consumers of aromatic rice.

In October 2023, the government of Bangladesh imposed an indefinite ban on rice exports, including both aromatic and non-aromatic varieties. The move was a precautionary measure aimed at safeguarding the nation's food security.

Before the ban, various businesses were exporting aromatic rice to around 136 countries, including the United Arab Emirates, Europe, the United States, the United Kingdom, Malaysia, Singapore, Brunei, South Korea, and European nations.

Bangladesh began exporting aromatic rice in the fiscal year 2009–2010 by shipping 663 tonnes.

Md Masudul Hasan, secretary at the Ministry of Food, informed The Daily Star on January 22 that a policy decision regarding the export of aromatic rice was made during a meeting of the Food Planning and Monitoring Committee.

However, he clarified that no official order had been issued, though he expressed confidence that it would be forthcoming. The secretary also noted that no final decision has been made regarding the price and quantity of rice to be exported.

These matters are still under discussion and will be decided by the technical committee, with a decision expected shortly.

Hasan emphasised that the government would not permit exports of large quantities of aromatic rice and assured that any export permission would be carefully regulated to avoid jeopardising the nation's food security.

When asked about the matter yesterday, Food Ministry Adviser Ali Imam Majumder told The Daily Star that although a policy decision regarding the export of aromatic rice was made during the FPMC meeting.

However, he added that final approval was yet to be granted.

"Some additional aspects are being examined. If everything is in order, the government will give final approval," he added.

WHAT EXPORTERS SAY

Eleash Mridha, managing director of PRAN Group, a leading food processor and exporter, told The Daily Star that if the government's decision is implemented, agro-processed food exports would flourish.

"Farmers will be encouraged to grow these varieties of rice. The production of aromatic rice in our country far exceeds its consumption, leading to a significant drop in prices," he said.

In February–March 2024, aromatic rice was selling at the retail level for a maximum of Tk 160 to Tk 165 per kilogram. However, it is now priced at Tk 120 to Tk 125 per kg, he added.

Mridha also warned that farmers would eventually stop growing aromatic rice if they could not benefit, ultimately impacting the economy.

Faria Yasmin, chief business officer of ACI Foods & Commodity Brands, welcomed the government's move, saying: "This will strengthen Bangladesh's brand image.

"Despite high demand, the ban over the past two years caused us to lose the international market, which has now been taken over by India and Pakistan," she said.

Yasmin cautioned that if exports were allowed and then suddenly banned again, it would lead to significant economic losses. "We urge the government to consider this matter carefully. Aromatic rice accounted for 40 to 50 percent of our total agro-processed food exports."

Another exporter, speaking on condition of anonymity, expressed hope that the government would soon grant export permission.

They also expect the export quantity to increase compared to previous levels and believe that the ground lost due to the export ban can be quickly made up.

EXPORT OF AROMATIC RICE

According to data from the Export Promotion Bureau (EPB), export earnings from aromatic rice hit $1.40 million in FY19 before increasing to $2.88 million in FY20.

However, earnings dropped to $2.06 million in FY21 before going down again to $1.07 million in FY22.

In FY23, the ban was imposed and exports plummeted to nil.

However, aromatic rice exports managed to bring in $0.06 million in FY24.

EPB data also shows that no aromatic rice had been exported in FY25 as of December.

Around 33 varieties of aromatic rice are cultivated in Bangladesh, according to the Bangladesh Rice Research Institute.