India may lift export ban on non-basmati rice by Oct.

NEW DELHI (Commodity Online): In a major development towards prevailing rice exports ban, India is likely to decide on lifting a ban on exports of non-basmati rice only after assessing the size of the main summer-sown crop.

According to India's Trade Secretary, Rahul Khullar, India may lift a ban on exports of non-basmati rice only after assessing the size of the main summer-sown crop in October-November.

"When kharif (summer crop) is around the corner, and if it is a good crop, then I can tell you (about allowing exports)," Khullar told Dow Jones Newswires.

India, the world's second-largest rice producer, banned exports of non-basmati, or common-grade, rice in 2007 to boost domestic supplies and curb prices.

But, private traders now want the government to lift the ban because the country's stocks are overflowing. Despite a drought last year, federal foodgrain stocks swelled to 60.42 million metric tons as of May 30, nearly four times the requirement, as high state-fixed prices tempted farmers to sell most of their produce to the government, rather than to private traders.

The country's rice production is expected to rise 12% to around 100 million tons during the 2010-11 crop year, starting July 1. Khullar said the government can utilize some of the bulging stocks of foodgrains for its welfare programs.


Source : Commodity Online