Warehouse full, but Govt says no to rice export

Despite admitting there is far more foodgrain stocks to meet demand for the Targeted Public Distribution System (TPDS) and maintaining strategic reserve and buffer stocks norms, the government on Tuesday said it has turned down requests from many states to lift ban imposed on non-basmati rice exports.

The government had banned non-basmati rice exports in April 2008, to control rising domestic price through improving supplies. However, it allowed export of limited quantity of non-basmati rice to meet humanitarian needs.

Minister of state for agriculture KV Thomas said in the Lok Sabha that while the country?s foodgrain production for the current kharif season was expected to increase by 6% to 114.63 million tonne, it had turned down requests from Punjab, Andhra Pradesh and Chhattisgarh to resume non-basmati rice exports.

?Requests were received from the state governments of Punjab, Andhra Pradesh and Chhattisgarh for export of non-basmati rice. Besides, requests were also received from Rice Millers/ Exporters Association of Punjab and Kerala. These requests were considered but not acceded to,? KV Thomas said in Parliament.

Meanwhile, agriculture minister Sharad Pawar also stated in the Lok Sabha that stocks of foodgrain in government godowns are ?practically double? the buffer stock norms. ?Our warehouses are full. As per buffer norms, we have practically double…There is no shortage,? Pawar noted.

Before the imposition of the ban, the country used to export non-basmati rice worth Rs 8000-crore annually. Officials sources had told FE recently that with the government having more than 17 million tonne of rice at present, which is more than the requirement under the strategic reserve and buffer stocks norm, the exports of premium quality non-basmati rice, which could command more than the minimum export price of $ 900 per tonne for basmati rice, should be allowed.

?We can export atleast 3-4 lakh tonne of premium non-basmati rice during the current year after the ban on exports is lifted,? a commerce ministry official said. The official said in the absence of exports, domestic prices are not reflective of global price these premiums rice could command.

?Exports of superior quality non-basmati rice should be allowed so that farmers get better price realisation and over all rice exports will get a boost,?Vijay Setia, president, All India Rice Exporters Association said.

With the expectation of better rice output, Food Corporation of India (FCI) plans to procure 32.7 million tonne of kharif paddy. Thus, the government is going to face huge challenges in terms of creating storage facilities for the new grain.

Setia said that there are many such high-value, non-basmati rice varieties which can match aroma, texture and taste normally associated with basmati rice and could be promoted to harness their export potential.

Meanwhile, Pawar insisted that procurement, storage and allocation to states was the responsibility of the Centre but distribution through TPDS was the job of states. He blamed the states for not lifting foodgrain allocated to them.