Following the allegation of diversion of consignment of non-basmati rice meant for ?humanitarian aid? to many African countries, Andhra Pradesh chief minister YSR Reddy has asked the commerce ministry to review and suspend export permits given to farms.
In a bid to control rising prices in the domestic market early last year, the government had imposed export ban on non-basmati rice and allowed exports of rice on ?humanitarian ground? in case-to-case basis.
Union minister for commerce & industry Jyotiraditya Scindia said in Rajya Sabha that Reddy government ?has requested for review and suspension of exports permits given to the 100% export-oriented units for exporting non-basmati rice until the prices of super fine variety stablises.? The directorate general of foreign trade is considering the proposal by the AP chief minister, he said.
Scindia said the Centre, on request from the Non-Basmati Rice Exporters Association of Hyderabad, had allowed exports of 25,000 tonne of non-basmati rice through two export units last year. Although India has been the leader in the basmati rice exports, the ban on non-basmati rice is proving to boon to its competitors like Thailand.
?Thailand, Vietnam, Pakistan, Burma and Brazil collectively expanded exports by 1.7 million tonne in 2008, much of which went to historically Indian markets in Africa,? the US Department of Agriculture (USDA) said in a recent report.
However, India is highly unlikely to lift ban on non-basmati rice export following deficient rains impacting the paddy sowing in the country.
Food & Agriculture minister Sharad Pawar recently informed the Rajya Sabha that the government would stop all exports of non-basmati rice and wheat to counter the deficient rainfall. He announced this a day after Manmohan Singh and his colleagues were briefed on the monsoon situation and kharif sowing. Allaying fears of foodgrains shortage, he said, ?Stock position is quite comfortable.?