Global demand pushes up basmati exports; ban dents non-basmati

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India’s basmati rice exports are estimated to have jumped by 13% despite a cess of Rs 8,000 a tonne, while shipment of non-basmati varieties fell by 31% in the crop year ending September 2008 due to the ban. According to official sources, basmati rice exports during the 2007-08 season (October-September) is estimated at 1.19 million tonne (MT), compared with 1.05 MT in the previous season.

However, exports of non-basmati rice is estimated to have declined to 3.2 MT from 4.67 MT during the period under review. This estimate is based on the no-objection certificate issued by the Agricultural and Processed Food Export Development Authority (APEDA). The main reason for the fall in export of non-basmati rice is attributed to the ban on shipment from April, though restrictions like imposing a minimum export price (MEP) were introduced in October 2007 when the season began. Exporters said that the decline was not much considering the fact that shipments were not allowed for six months during the 2007-08 season.

Commenting on the jump in export of basmati rice, All India Rice Exporters Association president Vijay Sethia said that the shipment increased as the world had a shortage of the grain last year, which also helped exporters receive a good price despite the MEP and cess. He demanded that the government either remove the MEP on basmati or reduce it to compete with Pakistan, which has withdrawn the MEP on prospects of a better harvest.

The Centre first imposed a ban on rice export in October last year, but later lifted it by introducing an MEP on both basmati and non-basmati rice following protests by traders, exporters and farmers.The MEP on non-basmati rice was raised from $650 a tonne to $1,000 a tonne in phases. The Centre had banned the export of non-basmati rice from April as part of its measures to control inflation.

In the case of basmati rice, the MEP went up to $1,200 dollars a tonne. PTI

Besides, the government also levied an export cess of $200 a tonne.