Export of rice to African nations permitted

STC to ship 55,000 tonnes to Nigeria, 3 other countries.

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Nigeria, Senegal and Ghana would get 15,000 tonnes of non-basmati rice each, Cameron would get 10,000 tonnes from India.

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G. Srinivasan

New Delhi, Jan. 16

Even as the plea for lifting the long ban on non-basmati rice remains strident, the Government on Friday announced release of 55,000 tonnes of non-basmati rice for export with a minimum of 25 per cent brokens for African countries on the eve of the Partnership Summit with African countries, beginning here from January 19.

In a notification issued here, the Director General of Foreign Trade (DGFT) has said the continuing ban on export of non-basmati rice would not be applicable to export of such rice to four African countries, viz., Nigeria, Senegal, Ghana and Cameron, subject to certain provisos.

While Nigeria, Senegal and Ghana would get 15,000 tonnes of non-basmati rice each, Cameron would get 10,000 tonnes of non-basmati rice from India. According to DGFT, the specified quantities would be exported through the State Trading Corporation of India (STC) till April 30.

Procurement criteria

STC would procure rice from such rice mills with surplus rice/paddy in their stock. STC would ensure that its entry into the export market does not affect the overall price situation of rice, and also source the rice to be exported from more than one State and in four different tranches.

It might be noted that the empowered group of Ministers (eGoM) headed by the Union Agriculture Minister, Mr Sharad Pawar, in November 2008, decided to export up to two million tonnes (mt) of non-basmati rice and 1.2 mt of basmati rice. It was agreed that after declaration of Pusa 1121 as basmati, some of the quantity budgeted for non-basmati might shift to basmati and the remaining might be kept for export on diplomatic basis through the Ministry of External Affairs. Since that meeting in November last, Pusa 1121 was allowed to be exported as basmati, subsequently.

Industry sources told Business Line here that if it is decided to allow export of non-basmati rice through this reserve earmarked earlier, how is it that the STC is tasked with to procure this 55,000 tonnes of non-basmati from more than one State and from mills with surplus rice/paddy in their stocks. It is also not known the price at which it is to be procured by the STC.

Time to relax ban

When contacted, the South India Rice Exporters Association Secretary, Mr P. Vishnukumar, said that if the Government could relax the long ban on non-basmati rice prevalent since March 31, 2008, to help African countries savour Indian rice, the time had come to show equal concern to expatriate Indian population, particularly in West Asia, Europe and the US to give traditional non-basmati premium varieties such as ponni, sona masuri and matta rice from India.

The industry is hopeful that a decision to release at least 25,000 to 50,000 tonnes of such premium non-basmati rice variety would be taken by the eGom when it would meet here on January 20.

Officials in the Department of Commerce are of the view that there is some merit in the demand of South Indian rice producers to get a respite from the choking ban on non-basmati rice that has been in vogue since April 2008.