Curb on Rice Exports Likely to be Relaxed.

New Delhi: With rice production expected to rise by almost 6% in 2010-11, the government is believed to contemplating easing the ban exports of non-basmati rice by allowing export of some premium varieties of non-basmati rice.

The government had imposed ban on non-basmati rice export in 2008 to boost domestic supplies and curb rising prices. Before imposition of the ban, the country used to export around Rs 8,000 crore worth of non-basmati rice worth annually.

Officials sources told FE that with the government having more than 17 million tonne of rice at present in its warehouses which is more than the requirement under the strategic reserve and buffer stocks norm, export of premium quality non-basmati rice which command a price of more than $ 900 per tonne in the international markets is being considered. $900 is minimum export price of basmati (aromatic) rice fixed by the government.

“We can export atleast 3-4 lakh tonne of premium non-basmati rice during the current year after the ban on exports is lifted,” a commerce ministry official said.

“Exports of superior quality non-basmati rice should be allowed so that farmers get better price realisation and over all rice exports get a boost,”Vijay Setia, president, All India Rice Exporters Association said.

Meanwhile, a food ministry official said 82 to 83 million tonne of foodgrain is expected to arrive at central and state godowns over the next five months. Centre plans to procure 32.7 million tonne of kharif paddy.

Setia said that there are many such high-value, non-basmati rice varieties which can match aroma, texture and taste normally associated with basmati rice and could be promoted to harness their export potential.

An compendium of aromatic short grain rice prepared by the Indian Agricultural Research Institute (IARI) and the Agricultural and Processed Food Products Export Development Authority (Apeda) has identified varieties such as kalanamak, tilakchandan and jeerabati (Uttar Pradesh), kala jeera (Orissa), katrani ( Bihar), ambemohar (Maharashtra), govindbhog and badshahbhog (West Bengal), dubraj, badshahbhog and jawaphool (Chhattisgarh) and kala joha (Assam) which could be harnessed and developed for their export potential.

Source : financialexpress.com