Informist, Thursday, Sep 19, 2024

--Farm secy: Mulling re-starting rice exports with some restrictions

--CONTEXT: Farm Secy Devesh Chaturvedi on sidelines of media briefing

--Farm secy: Call on non-basmati rice exports post clarity on output

NEW DELHI – The government is mulling over resuming the export of non-basmati rice with some trade barriers, said Devesh Chaturvedi, secretary, Department of Agriculture & Farmers Welfare, today. In July 2023, the government had prohibited the export of non-basmati white rice due to concern over lower paddy acreage and to control soaring rice prices, and currently allows exports only through government-to-government deals.

Deliberations are going on and a decision will be taken after the paddy crop situation is clear, Chaturvedi said on the sidelines of a media briefing on the achievements of the agriculture ministry in 100 days of the National Democratic Alliance government's third term.

So far, farmers in the country have sown paddy, a key kharif crop, across 41 mln ha, up 4% on year, data released by the government on Tuesday showed. However, recent heavy rains in major rice producing states have raised concern about the damage to the standing crop of paddy. The actual extent of the damage to the paddy crop is yet to be ascertained. The government has not released any estimate for rice production so far for the ongoing crop year started July. In the previous year, the rice production was estimated at 136.7 mln tn, slightly higher than the year-ago period.

On similar lines, Food Secretary Sanjeev Chopra had said on Wednesday that the government was considering lifting curbs on non-basmati rice exports. After having banned exports in July last year, New Delhi is now deliberating on rice exports as it sits on nearly 20-year-high rice stocks at government godowns. As of Sep 1, rice stocks with Food Corp of India were the highest since 2005 for the third straight month, according to data from the nodal food procurement agency.

In the rice basket, trade restrictions also remain on parboiled rice with a 20% export duty. Chaturvedi did not divulge details of the government's plans for parboiled rice exports.

Last week, the Centre had scrapped the minimum export price on basmati rice. Earlier, the minimum export price on basmati was $950 per tonne. By scrapping the minimum export price, the government wanted to give a boost to exports and reduce domestic stocks of basmati rice, according to Ajay Kedia, founder and director of Kedia Advisory.

Last month, the Centre had allowed ethanol distilleries to participate in the Food Corporation of India's weekly rice auctions. The distilleries can buy a maximum of 2.3 mln tn of rice from the auctions. End

Reported by Afra Abubacker

Edited by Akul Nishant Akhoury

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