NEW DELHI:(PTI) With the area under paddy cultivation increasing, the government is mulling at allowing exports of about three million tonne of non-basmati rice to African countries after November.
Currently, export of non-basmati rice is banned to ensure availability of the commodity in the domestic market and to keep a check on inflation, which has come closer to the 12% mark. “Even if the ban is not fully lifted, we may export two to three million tonne after November to some African countries,” a top commerce ministry official said.
He said a bumper crop of 94 million tonne of non-basmati rice is expected in November, of which six million tonne would be surplus. The summer-sown rice crop was planted on 23.13 million hectares as on July 31, up 11% from 20.76 million hectares a year-ago.
Besides a ban on the non-basmati variety, export restrictions like minimum export price (MEP) fixation of $1,000 per tonne and export tax were imposed on the expensive basmati rice.
The country saw a record production of 96.43 million tonne in the 2007-08. The rice harvest comes into the market from October. Export was allowed for the following six months, before being banned in April this year. However, rice exporters demanded that export ban of non-basmati rice be eased and suggested that the Centre may put a cap on the quantity to be shipped for its adequate availability in the domestic market.
There are many options available with the government to regulate instead of putting a blanket ban on the exports, All India Rice Exporters Association president Vijay Setia said.
About lifting ban on non-basmati rice export, agriculture minister Sharad Pawar on July 16 had said a decision would be taken after assessing the kharif crop. He, however, added that “about half-a-million-tonne will be made available for African countries from open market. The prime minister had made this announcement at G8 summit. We will honour that.”
Mr Setia also demanded that the government should identify the varieties, which it would require for the public distribution system and allow other varieties to be exported at a fixed price.
On basmati rice, he said export tax on the premium variety should be immediately withdrawn as the traders are passing on the tax to farmers.
The Centre has levied an export tax of Rs 8,000 per tonne and fixed the MEP at $1,000 a ton for basmati rice.
Because of the export tax, which if taken at Rs 6,000 a tonne for paddy for an yield of 2.5 tonne per acre, farmers would have to pay a total of Rs 19,000 per acre as tax, including export cess, VAT and mandi tax, he added.
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