NEW DELHI: With monsoon playing truant, the commerce department has decided to wait till the end of the month before it makes a recommendation to the empowered group of ministers (eGoM) on the possible lifting of the existing ban on export of non-basmati rice. The department is of the view that despite rice stock piling up, it would not be prudent to make a proposal on rice exports before ensuring that the country was not heading towards a big drought.
Speaking to ET, a commerce department official pointed out that while some time back the government was actively considering lifting the ban on non-basmati rice exports, the delay in monsoons and the spectre of a drought looming large in several parts of the country, had changed things. “We will more or less get a rough picture of monsoons in all parts of the country by the end of the month. Our recommendation to the eGoM will be made subsequently,” the official said.
The country’s rice stock lying with the Food Corporation of India has touched 26 million tonne. This approximately covers the buffer norms for more than a year.
The government, in the month of May this year, had allowed 1 million tonne of low-premium non-basmati rice to be exported to 21 African countries. This was in addition to the 55,000 tonne of rice allowed to be exported to four African countries in January this year.
According to rice traders, none of the 1 million tonne of non-basmati rice that was allowed to be exported had actually been exported. Since the government has already taken an informed decision on allowing 1 million tonne to be exported, we want that private traders should also be allowed to do it, said Rajesh Pahadia, a Delhi-based exporter of grains. “Sometimes government agencies like STC and MMTC cannot get into certain deals as the feel the risks involved are high. Such deals could be clinched by private traders,” he said.
Rice exporters also want the freedom to buy premium quality of rice from the open market for exports. However, this is a decision which they may have to wait a long time for.
Source : The Economic Times