Rice export ban to hit Kakinada port's revenues

The Centre's move to ban rice exports is set have an adverse impact on the Kakinada anchorage port's revenues during the current financial year 2008-09. The port earns most of its revenues through rice exports.

The ban, which came into effect from April 1, is aimed at containing the price of the commodity. However, the Centre has allowed rice exports to Bangladesh under a food aid programme.

The anchorage port handled 40,19,025 tonne of cargo worth Rs 4,980.48 crore during 2007-08. Of this, rice exports accounted for a lion's share with 20,25,077 tonne worth Rs 2,255.17 crore in 2007-08 as against 19,95,223 tonne worth Rs 2,466.24 crore last year.

During the period October 2007 to March this year, the port handled nearly 635,000 tonne of rice worth Rs 529.87 crore.

According to sources, exporters have received orders from African countries and rice worth 20, 500 tonne have to be shipped. However, the customs department was not giving clearances to export the commodity. The move has not gone down well with the shipping trades, particularly rice export agents, who have expressed their resentment.

"If the ban continues, the revenue of port would take a severe hit,'' a port official told Business standard.

Meanwhile, West Bengal-based LMG International Limited has received an order to export 50,000 tonnes of rice to Bangladesh.