Bangladesh extended a ban on rice exports for another six months to June as prices in domestic markets are rising despite good crops, an official said on Friday. The south Asian country banned overseas shipments of common varieties in May 2008 following a sharp drop in domestic stocks, and six months later banned the export of all varieties.
"The government has taken the decision to continue the export ban in order to increase the supply of rice in the domestic market and hold down price," the commerce ministry official said. International prices are also rising as the Philippines is buying more rice because of repeated typhoons and major rice exporter India is buying after the worst monsoons in two decades hit its crops. Bangladesh produces around enough rice to feed its 150 million people but often faces food crunches due to natural disasters like floods and cyclones.
The country exports a small quantity of aromatic rice, but unscrupulous traders often sell other rice varieties, causing a shortfall in the local markets, food officials said. Bangladesh earned nearly $10 million from the export of aromatic and other fine quality rice to the United States, Britain and Gulf countries in the fiscal year to June 2008, up 30 percent from the previous year.
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