Dhaka, Bangladesh- (BBN)- The government has withdrawn cash subsidies on the export of aromatic and fine rice following the ban on export of the food-grain, officials said.
The Bangladesh Bank (BB), the country’s central bank, communicated the government decision on withdrawing the cash subsidy on the rice export to the commercial banks by issuing a circular on Thursday.
“We’ve issued the circular directing the banks not to provide cash subsidy on aromatic and fine rice in line with the government’s decision,” a BB senior official said, adding that the exporters had been receiving a 20 percent cash subsidy on exports of such rice.
On May 21 this year, the government imposed a ban on exports of all kinds of rice for six months aiming to increase supplies of the food essential to domestic markets.
Bangladesh exported rice worth about $9 million in fiscal year 2007-2008 and $5.97 million in 2006-2007.
On the other hand, the country imported rice worth $226.60 million in fiscal 2008-09 and $859.18 million in fiscal 2007-08, according to the central bank statistics.
BBN/SS/SI/AD-28August09-2:02 am (BST)