Aromatic rice exporters may get more time

The government is likely to extend the time for aromatic rice exports by one year, a senior official of the commerce ministry said yesterday.
“We are working on it. We expect to issue a notice within a month,” said the official, seeking to remain unnamed.
The ministry plans to extend time after the validity of scented rice export expired on June 30.
On June 17 last year, the government extended time for aromatic rice export for fiscal 2014-15 but maintained a ban on exports of parboiled rice to keep the prices of the staple stable on the domestic market.
Many exporters have already applied to the commerce ministry for extension of time to ship aromatic rice, which is popular among Bangladeshis living abroad, along with South Asians residing in Europe, America, Australia and the Middle East.
Some exporters said the delay in the government's decision has forced them to either cancel orders or keep the shipments pending. “We are losing business. The delay in decision is creating a gap in the export market, which our competitors in India and Pakistan will take up,” said Khurshid Ahmad Farhad, assistant general manager-in-charge of export at Square Food and Beverage Ltd, a member of Square Group.
Square exported about 300 tonnes of aromatic rice under its brand in fiscal 2014-15, up from about 250 tonnes a year earlier, according to Farhad.
Aromatic rice export resumed in mid-2012 after a three-year ban, imposed on all sorts of rice in November 2008 to boost supply and keep the prices stable in the local market.
There were also allegations that parboiled rice was exported in the name of the aromatic variety. Md Mizanur Rahman, chief of exports at Pran, said the past ban had affected Bangladesh's export markets for aromatic rice. “Our markets would have been bigger had there been no ban -- we had to regain the market.”
Pran, a leading food processor and exporter, shipped 2,500 tonnes of scented rice in fiscal 2014-15, up 38.89 percent year-on-year, according to the official. The company aims to export 3,000 tonnes this fiscal year.
Currently, it has export orders for nearly 200 tonnes of rice, but it cannot start shipping until the extension comes through.
“We are waiting for permission,” said Rahman, who believes that the demand for Bangladesh's scented rice will grow because of its better flavour than Basmati, exported mainly from Pakistan and India.
Exporters fetched $7.34 million last fiscal year, up 51 percent year-on-year, according to data from the Export Promotion Bureau.
Comments