| The government is likely to increase the minimum export price of non-basmati rice to $600-$650 a tonne from $500 a tonne to improve domestic supplies and discourage exports, according to Vijay Setia, president, All India Rice Exporters Association.
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| “In a couple of days, the government could raise the MEP for non-basmati rice from the current $500 a tonne (free on board) to even above $600 a tonne,” Setia said.
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| He said the industry has recommended increasing the MEP of non-basmati rice to avoid a complete ban on exports.
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| The government also feels that the MEP provision would help stabilise domestic prices.
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| V K Kaul, assistant general manager (cereals), Agriculture Processed Food Products Export Development Authority, said the MEP provision by the government would also discourage smuggling of rice.
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| There have been reports that rice was being smuggled into Bangladesh from West Bengal and the Northeast.
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| The government had banned export of non-basmati rice priced under $500 a tonne (free on board) on October 9, to maintain the buffer and public distribution system stocks, but exports under transitional arrangements were allowed.
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| Early this month, a senior government official had said the government is planning to impose a complete ban on export of non-basmati rice to avoid a likely shortage.
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| “Rice exports had already touched 3 mln tn in October, prior to the government’s decision to ban exports,” Setia informed.
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| The government has increased rice allocation to states under the targeted public distribution scheme since mid-2006 to conserve its dwindling wheat stocks.
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| “The move started adversely impacting domestic rice stocks,” Setia said.
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| As on February 1, the government’s rice stocks stood at 7.30 million tonne, down 42 per cent year-on-year on higher allocation under state-run welfare schemes and lower procurement due to high open market prices.
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| In Delhi, prices of Pusa Sharbati variety of non-basmati rice have risen by over Rs 1,000 per 100 kg to Rs 3,200-3,300 in the last two to three months.
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| An official with a rice export firm, who did not wish to be identified, said prices have been rising primarily due to higher exports to neighbouring countries.
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| “Open market supplies are tight and demand from neighbouring countries such as Pakistan and Bangladesh is on the rise,” he said. |
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