The Hindu Business Line : Commerce Dept for lifting ban on export of premium rice varieties

On suggestion
Govt can enable export of premium S. Indian rice with minimum export price.
Can also contemplate quantitative ceilings, quality control.
Exporters fear they may lose hard-won markets in places like Far East, W. Asia.

G. Srinivasan

New Delhi, Oct. 15 The Commerce Ministry is fully supportive of the demand for lifting the ban on export of premium rice varieties imposed on all non-basmati rice in the wake of beefing up domestic supply position of rice to safeguard food security of the country.

Official sources told Business Line here that a delegation of exporters of premium variety of non-basmati rice such as Ponni, Sona Mahsuri and Red Rice from South India has urged the Government to lift the blanket ban on non-basmati premium varieties as they command considerable overseas market presence and fetch higher price realisation per unit.

“There is a clear thinking within the Commerce Department that the temporary problems such as an export ban could be precluded by keeping such high-priced varieties out of the ban” through a Government decision to be taken up through the Union Cabinet, the sources said.

The officials said the Government could facilitate the export of premium South Indian rice by prescribing a minimum export price (MEP) as it has done in the case of onion and basmati rice.

Market position

Mr Vishnu Kumar, Secretary, South India Rice Exporters Association, said that the ban would cause exporters of these varieties to lose hard-won market in places like Far East and West Asia.

Industry representatives estimate that export of premium South Indian rice during the current fiscal is likely to be 1.50 lakh tonnes, given the fact that the volume of non-basmati rice exported through Chennai and Kochi ports during 2006-07 was 1.38 lakh tonnes.

Hence alongside MEP, quantitative ceiling on export of premium rice varieties could also be contemplated.

Since it is difficult to administer the export quota in the absence of any official classification of non-basmati rice exports, the Government could use the data on the port of exports and price realisation by exporters.

This would help segregate the exporters who have exported premium South Indian rice and common non-basmati rice, they said. Any rice exporter who has executed past export through Chennai and Kochi might qualify to bid for this export quota.

They further suggest that quality control on export of premium rice varieties from South India could be exercised through Export Inspection Council (EPC) by adopting temporary standards on export of premium South Indian rice.

The export of premium South Indian rice might be restricted through containerised shipments which would effectively eliminate the export of common rice varieties. Alongside, port restrictions such as Chennai or Kochi port for Ponni or Sona Mahsuri Rice and Red Rice might be in place so that if any exporter sought to export common rice from neighbouring States, the component of transport cost would cause price barrier, paving the way for export of only genuine premium South Indian rice.

In order to make the export quota effective, the Government might release monthly export quota after duly vetting the appropriate documents of exporters till the ban on non-basmati rice is lifted.

Such port restrictions and export quota and pre-shipment inspections would help prevent unscrupulous traders from over-invoicing or inflating the price of export consignments to ensure transfer of funds or receipts through official channels.

They said that the government could do the tight-rope walk of promoting the export of premium rice varieties without diluting the sanctity of ban on non-basmati rice for maintaining food security by putting in place the requisite safeguard mechanisms.

Related Stories:
Farm Ministry notifies evolved basmati variety for export
Exporters seek exemption for premium grades rice from ban
Uncertainty over rice contracted for exports

More Stories on : Rice | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
TMB, clearing banker for MCX

Commerce Dept for lifting ban on export of premium rice varieties

‘Low’ may not do a Gonu with N-E monsoon

Spot rubber improves on global cues

Reliance Money small gold coin sale

Hyderabad to host poultry exhibition

Poor weather may hit global clove supply

Pepper futures move up on buying support

Dooars tea garden workers to get Rs 1,000 ex-gratia

Lower landed cost may favour crude palm oil import