A week after the government barred export of non-basmati rice, the commerce ministry has asked the food ministry to lift the ban following demands from various quarters to permit exports of premium non-basmati varieties of rice. The matter would be taken up at the Cabinet level soon, sources said.

However, food minister Sharad Pawar had said on Saturday that the decision would only be reviewed ?sometime next year? as the decision was taken to build adequate stocks in the country.

The Cabinet had imposed a ban on non-basmati rice on October 9 with immediate effect. Pointing out difficulties in distinguishing basmati and other varieties, which in turn is leading to problems in implementing the ban, the commerce ministry has instead advocated fixing a minimum export price (MEP) below which the government could consider banning varieties of rice. The industry says premium non-basmati rice varieties do not affect the local prices and domestic availability, and should be allowed for exports. There is a lot of demand for premium non-basmati rice, especially from regions like the Gulf. The commerce ministry has also called for the ban to be lifted as soon as prices in the country stabilise.

?The ban on non-basmati rice is temporary. Besides, it is better to fix a certain price and ban all varieties below that. Without such a move, there will be lot of problems in implementation,? said a government official. Unlike wheat, prices of rice range from Rs 10 to Rs 40 a kg, the officer said.

Rice exporters are, however, of the opinion that the government should regulate exports rather than imposing a blanket ban. ?We are not disputing the food minister?s view of food security. However, a complete ban is harmful to exporters? interest as clients could always switch to suppliers from Pakistan,? said Vijay Setia, president, All India Rice Exporters; Association.

Instead, the government could fix an MEP for rice exports of around $550 per tonne, Setia suggested. The varieties that the government procures for the central pool have an average price of $300 per tonne. However, Pusa-1121 has an export price of $1,100 per tonne and Sharbati has an export price of $800 in the international market.

?Banning non-basmati rice exports on the basis of food security is flimsy. There is no shortfall of rice in the country. As per government data, there will be 92.757 million tonne of rice. Besides, non-basmati rice exports is only 3 million tonne,? said Prem Garg, MD, Shivnath Rai Harnarain (India) Ltd.