Govt may lift ban on rice export

GURGAON/ NEW DELHI, Sept 22 (PTI): Amid prospects of good kharif output, Finance Minister P Chidambaram today expressed the hope that the ban on export of non-basmati rice, which was imposed as a temporary measure, would be lifted soon.

“I know that we were forced to put temporary constraints on certain kinds of rice...hopefully these restrictions can be removed as early as possible,” he said after inaugurating the new facility of rice exporting firm Tilda Riceland in Gurgaon.

The government has banned export of non-basmati rice in April as part of initiatives to check rising inflation that touched the 13-year high mark of about 12 per cent.

“I am not giving you any date or I am not promising you any thing but things will ease and we will be able to remove these temporary restrictions,” the minister said.

In view of record procurement of over 27 million tonnes rice during 2007-08 season ending September, the government permitted export of Pusa 1121, a non-basmati variety of rice.

Meanwhile, a senior commerce ministry official said that corps have been destroyed in certain areas on account of flood and the government will take a view on the availability position around mid-October, when the bulk of rice will arrive in markets, before deciding on lifting of export curb.

Based on initial reports, the official pointed out that rice production is likely to exceed 96.43 million tonnes output recorded in the previous year and some more varieties in addition to Pusa 1121 may be allowed for export.

The area under rice has gone up by three per cent at 373.51 lakh hectares during the current year.

The senior commerce ministry official said the Empowered Group of Ministers (eGoM) on wheat and rice, headed by External Affairs Minister Pranab Mukherjee, is expected to review the availability situation of rice and other crops on November 1.

“There has been quite a lot of damage to crops due to flood. So, we have to see the impact on maize and rice,” the official added.

He also indicated that there may not be complete withdrawal of ban on non-basmati rice export. “All (varieties of) non-basmati rice cannot go,” he said.

India may export about two million tons of basmati, one and half million tons of Pusa 1121 and another half a million tonnes of other varieties, he said.

India, the third largest exporter of rice after Thailand and Vietnam, had exported 53.14 lakh tonnes of non-basmati rice and 11.81 lakh tonnes of basmati rice in 2007-08 fiscal.