Export of all varieties of rice banned for six months
Wednesday, 19 November 2008
Shakhawat Hossain
The government has imposed export ban of all varieties of rice for a period of six months to boost the supply of the staple in the local market.
The official move came after reports that a section of unscrupulous traders were making shipment of highly consumed coarse rice in the name of aromatic variety, which was allowed for export, commerce ministry officials said Tuesday.
"Export ban on all varieties of rice has been imposed for the next six months to boost supply of the item in the local market," said commerce ministry spokesman Faizul Haq.
The ban has been made effective from November 6 last. The move is expected to remove the scarcity of rice and curb price hike in the coming months, Haq added.
The decision came almost six months after the commerce ministry imposed export ban on only non-aromatic rice and allowed continuation of export of aromatic variety.
Commerce ministry officials said some dishonest businessmen were cashing in such decision and were sending coarse varieties in the name of aromatic rice.
The finding has prompted the caretaker administration to impose total ban as price of rice in the local market has not fallen as per expectation despite bumper harvest of Boro, they said.
Rice export from the country to the United States, the United Kingdom and the Gulf countries has been rising due to high demand by the expatriate Bangladeshis living in those countries.
The country exported rice worth Tk 372 million in the first eight months of fiscal 2007-08, up from Tk 282 million the same period previous fiscal, according to the Export Promotion Bureau (EPB).
The country spent more than US$ 800 million to import rice to meet the local shortfall caused by natural disaster in 2007-08.
Some businessmen said it will hurt the export business while others viewed it as a good step to bring down rice prices in the local market.
Pran-RFL group senior manager Shaheen Shah Azad said his company will face problems as it has already completed formalities to export nearly 40 tonnes of aromatic rice targeting the Eid-ul-Azha festival.
"Due to the ban we have to suspend the export activities," he said, adding that the country would lose foreign exchange.
Businessmen of the city's wholesale hub Babubazar and Badamtali said price of rice is expected to fall further in the local market due to the ban.
However, they criticised the government saying that the decision was not timely.
"There is no supply shortage of rice right at this moment. Besides, newly harvested Aman has started arriving in the market," said Babubazar and Badamtali rice association secretary Mohammad Naim.
He said the government should have imposed export ban on all types of rice early this year when there was serious supply shortage of the item.
The government has imposed export ban of all varieties of rice for a period of six months to boost the supply of the staple in the local market.
The official move came after reports that a section of unscrupulous traders were making shipment of highly consumed coarse rice in the name of aromatic variety, which was allowed for export, commerce ministry officials said Tuesday.
"Export ban on all varieties of rice has been imposed for the next six months to boost supply of the item in the local market," said commerce ministry spokesman Faizul Haq.
The ban has been made effective from November 6 last. The move is expected to remove the scarcity of rice and curb price hike in the coming months, Haq added.
The decision came almost six months after the commerce ministry imposed export ban on only non-aromatic rice and allowed continuation of export of aromatic variety.
Commerce ministry officials said some dishonest businessmen were cashing in such decision and were sending coarse varieties in the name of aromatic rice.
The finding has prompted the caretaker administration to impose total ban as price of rice in the local market has not fallen as per expectation despite bumper harvest of Boro, they said.
Rice export from the country to the United States, the United Kingdom and the Gulf countries has been rising due to high demand by the expatriate Bangladeshis living in those countries.
The country exported rice worth Tk 372 million in the first eight months of fiscal 2007-08, up from Tk 282 million the same period previous fiscal, according to the Export Promotion Bureau (EPB).
The country spent more than US$ 800 million to import rice to meet the local shortfall caused by natural disaster in 2007-08.
Some businessmen said it will hurt the export business while others viewed it as a good step to bring down rice prices in the local market.
Pran-RFL group senior manager Shaheen Shah Azad said his company will face problems as it has already completed formalities to export nearly 40 tonnes of aromatic rice targeting the Eid-ul-Azha festival.
"Due to the ban we have to suspend the export activities," he said, adding that the country would lose foreign exchange.
Businessmen of the city's wholesale hub Babubazar and Badamtali said price of rice is expected to fall further in the local market due to the ban.
However, they criticised the government saying that the decision was not timely.
"There is no supply shortage of rice right at this moment. Besides, newly harvested Aman has started arriving in the market," said Babubazar and Badamtali rice association secretary Mohammad Naim.
He said the government should have imposed export ban on all types of rice early this year when there was serious supply shortage of the item.