Bangladesh government terminates the cash subsidy on aromatic rice export

The government of Bangladesh has ended the cash subsidy for aromatic rice exports. Other varieties of rice, with the exception of aromatic or fragrant rice, will be eligible for the existing 15% subsidy. On 15 November 2021, the Bangladesh Bank published a circular in this regard. The circular further stated that, as of January 30, 2022, the rice export incentive would no longer apply to aromatic rice. The facility was implemented last year by the government to stimulate the shipment of surplus grain, according to Bangladesh Bank sources. The government provided this subsidy against the export of rice produced through the processing of locally cultivated paddy since there was enough rice production in the country at the time to boost export trade.