Bangladesh is likely to allow private traders to export fine rice after a bumper harvest and a surge in domestic stocks, a commerce ministry official said. The country, a major importer that also usually exports a small quantity of rice, banned overseas shipments of common varieties in May 2008 following a drop in domestic stocks, and six months later banned the export of all varieties.
"In the first phase, we are going to allow export of 10,000 tonnes of aromatic rice," the commerce ministry official said. "After that we will consider the next step to allow further rice exports. But only fine variety and a certain amount of rice will be allowed for export for a limited period," he added.
Bangladesh exported rice worth nearly $9 million in 2007/08 fiscal year (July-June) and $5.97 million in 2006/07. At present, the country's rice stocks are around 10 million tonnes.
The poor South Asian country can face food crunches due to natural disasters like floods and cyclones. The world's second-largest rice importer had to import rice worth over $800 million last year to meet a shortfall caused by natural disasters and to control rice prices that almost doubled.