Govt clears decks for exports of select seeds

Breather For Rice, Corn Growers; Exported Seeds To Be Used Only For Planting New Crops

THE Centre has reopened the door to exports of seeds of non-basmati rice and corn on Wednesday, reversing earlier restrictions, but traders said the move did not mean it would quickly relax other export curbs for key grains.
    The commerce ministry said seeds being exported should be used only for planting new crops, not for consumption.
    Rice prices surged earlier this year after the government, which normally vies with Vietnam as the world's second-largest exporter, banned most shipments in March, triggering a wave of panic buying of Asia's staple food.
    The government also banned exports of corn last month until October 15, fearing increasing overseas demand could leave it short and drive up local prices, intensifying inflation fears. India is a small but important exporter of corn to south-east Asia. Both bans included shipments of seeds at the time.
    Traders say a bumper grains crop this year should allow the government to ease restrictions eventually, although Wednesday's move did not suggest that day was near, especially with election considerations looming next year. "The government is undecided on lifting of the ban," said Vijay Setia, president of the All India Rice Exporters Association.
    The food, agriculture and civil supplies minister Sharad Pawar has said the government's ban on non-basmati rice exports suitable for consumption would remain at least until November, by which time it would have a clear picture of the kharif (summersown) crop.
    In the meantime, some seeds can now be sold overseas, helping farmers abroad prepare for the next planting after many emptied their bins to capitalise on record prices this spring.
    "Export packets will be labelled that seeds are treated with chemical insecticides and cannot be used for food or feed purposes," the commerce ministry said in a statement.
    The price of benchmark Thai rice on Wednesday was steady at $700 per tonne, well below the record high of $1,080 per tonne marked in April but still about double what it was a year ago. On Wednesday, September CBOT corn was trading at $5.72-, per bushel, having surged to a record near $8 in late June before slumping to a low under $5 earlier this month.
    Traders say corn exports from India to countries such as Indonesia and the Philippines had risen sharply as high freight costs made purchases from the US expensive, prompting the ban.

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