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Businessmen want ban on aromatic rice exports to go

Rice exporters yesterday were unable to push through their proposal
to export at least 10 tonnes of aromatic rice, as the government
wants to prioritise domestic food security, said a commerce ministry
official. Commerce Minister Faruk Khan held a meeting with rice
exporters at his secretariat to discuss the proposal to allow
aromatic rice exports out of Bangladesh. The minister however was
unable to brief newsmen on the matter as he was on his way to
parliament. A ministry official who was present at the meeting told
The Daily Star that the minister did not accept the proposal, in
efforts to keep the prices of the staple food at tolerable levels.
"The government is prioritising domestic food security as it was one
of its electoral pledges to people," he quoted the minister. "The
commerce minister ruled out the possibility of allowing aromatic rice
exports," said Shah Alam Babu, president of Bangladesh Rice
Exporters Association (BREA), after the meeting. Alam said his
association has been lobbying with the government for several months
now to obtain a permit to export aromatic rice, as its demand is
high, especially among non-resident Bangladeshis (NRBs). He said rice
was last exported in May 2008 , when it was still permitted. However,
the then caretaker government imposed a ban on the export of all
types of rice as prices crept up due to supply shortages. According
to Alam, there is demand for 2 ,500 tonnes of aromatic rice a year by
NBRs and before the ban was imposed, at least 6 tonnes of aromatic
rice were exported a year. This time, exporters proposed a permit to
export of at least 10 tonnes of aromatic rice. He said farmers
produce 3 ,00 ,000 tonnes of aromatic rice a year, of which, 80 ,000
tonnes remain a surplus, as demand for such high quality rice is low
on local markets. "We were developing a Bangladeshi brand by
exporting rice as the demand for Chinigura and Kali Zeera is high
among the NRBs. But the ban on exports is hampering brand
development," Alam said.