The Commerce Ministry’s decision permitting export of up to 10 lakh tonnes (lt) of rice to African countries through parastatals is subject to the shipments containing a minimum 25 per cent brokens content.
“The rice to be exported shall be with a minimum of 25 per cent of brokens”, the Directorate General of Foreign Trade’s (DGFT) notification, dated May 6, has said.
“On the other hand, you have a condition of a minimum export price (MEP) of $1,100 a tonne below which no basmati rice can be shipped out. And now, the same Commerce Ministry is saying that you can export non-basmati rice only if it has a minimum 25 per cent brokens, which corresponds to the most commonly consumed grades here”, said Mr Vijay Sethia, former President of the All-India Rice Exporters’ Association (AIREA).
According to him, if the Government was keen to gradually ease restrictions on rice exports, the best way would have been to lower the MEP and make it applicable to both basmati as well as non-basmati grain. “By this, you will ensure that only high-end rice, which includes premium non-basmati varieties such as Ponni, Swarna Masuri and Red Matta, is exported, while the rice consumed by ordinary segments remains within the country”, he added.
The 10 lt of rice permitted to be exported has been allocated among 21 countries.
This includes 1,44,900 tonnes to Cote D’Ivorie, 1,41,300 tonnes to Senegal, 1,17,100 tonnes to Nigeria, 96,000 tonnes to Liberia, 72,400 tonnes to Togo, 68,800 tonnes to Ghana, 48,300 tonnes to Egypt, 38,500 tonnes to Sierra Leone, 36,250 tonnes to Gambia, 24,200 tonnes each to Burkina Faso, Mali, Somalia, Benin, Guinea Bissau, Mozambique and Zambia, 21,700 tonnes to Cameroon, 15,000 tonnes to Mauritius, 12,100 tonnes each to Djibouti and Zanzibar, and 5,550 to Tunisia.
Source : Business Line