Rice export to Sri Lanka gets a go-ahead

The cabinet committee on economic affairs has approved a proposal of the food ministry to export 50,000 tonnes of coarse rice to Sri Lanka under special arrangements, as there is a ban on non-fragrant rice export until June 2015.

The approval came at a meeting of the committee yesterday, with Finance Minister AMA Muhith in the chair.

Muhith told reporters after the meeting that the government has decided to export the rice on a test basis.

The minister also said the export will not create any crisis of rice in the country as there is a stock of 11 lakh tonnes now.

On the export price of the rice, he said it will be decided considering the international market prices and through discussion between the two countries.

However, the food ministry has estimated the export price at $493 a tonne, including insurance and freight charges.

Rice was selling at $430-$455 a tonne on August 16 in the international markets, including India, Pakistan, Thailand and Vietnam, according to a report of the food ministry.

Bangladesh exported aromatic rice in the past, but this will be the first-ever shipment of non-fragrant rice as Colombo has expressed interest to import rice from Dhaka on an emergency basis.

The food ministry said the government has a stock of 11 lakh tonnes of rice as of August -- 2.5 lakh tonnes higher than the stock in the same month last year.

Bangladesh can emerge as a rice exporter if the current stock is taken into account, the proposal said.

The government has not imported rice since last fiscal year. It bought 6.66 lakh tonnes from local millers in fiscal 2013-14, up from 2.19 lakh tonnes in the previous year.