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Tuesday, August 17, 1999

Rice exports dip as Asian, African countries recoup after drought 

PRESS TRUST OF INDIA  
New Delhi, Aug 16: The country's rice exports have declined by over 50 per cent during the first four months of the current financial year on reduced imports by some of the Asian and African nations, which have recovered from last year's crop loss due to drought.

Commerce ministry sources said registration for non-basmati rice exports between April and July this year have decreased to 8.15 lakh tonnes from 17.52 lakh tonnes during the same period last year.

Registration for exports of basmati, too, had witnessed a decline to 1.52 lakh tonnes from 2.67 lakh tonnes during the period, the sources said.

Registration for rice exports are done with the Agricultural and Processed Food Export Development Authority (APEDA).

``Some of the Asian countries which imported rice on a large-scale last year due to the drought caused by the el nino effect have had a good harvest, particularly Bangladesh in April,'' the sources said, adding this had shrunk the global rice market trade this year.

``We had a good runlast year due to the drought. This year we have not been able to do like last year as our prices are higher,'' they said.

El Nino is a phenomenon by which the temperature in the Pacific Ocean rises leading to drought in various parts of the region.

India's non-basmati rice exports for five per cent broken have been shipped at a price of 280-285 US dollars a tonne, while basmati exports was to the tune of 102.8 million dollars, the sources said.

``The same quality non-basmati rice is being sold at a lower price by Thailand ranging around 230-240 dollars,'' they said.

All India Rice Exporters' Association (AIREA) executive general Anil Adalakha said any price cut by Indian exporters had been minimal and in response to the prices quoted by Pakistani exporters.

Commerce ministry had anticipated non-basmati rice exports to fall this financial year to about 20 lakh tonnes against 46.7 lakh tonnes last year.

Sources said Russia could be one potential source to increase rice exports.

``They (Russia)require rice, sugar and wheat. But the problem in settling the dispute of paying back through exports against arms bought from the erstwhile Soviet Union is holding it up,'' they said.

A private trader said Russian demand for rice was good and Fortune India, a trading house, had got orders to export 50,000 tonnes.

Apeda officials said India annually exports about two lakh tonnes of rice to Russia under the rupee-rouble debt repayment route.

Last year's increase in rice exports had led to fall in the mandatory stocks to be maintained in the central pool in March, though the situation had improved as on July 1.

On July 1, rice stocks were 107.35 lakh tonnes against the mandated 100 lakh tonnes.

The reduced stock coupled with increase in rice prices had led to government contemplating restricting its exports.

However, the issue is still pending with the union cabinet.

The government had also introduced a special levy of Rs 10 per tonne on rice exports from April 1 to eliminate fly-by-nightoperators from registering its exports.

Commerce ministry sources said this was also having an effect on the registration of consignments.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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