Lift restrictions on better quality non-basmati exports: Trade body

The government should lift curbs on superior non-basmati rice exports as domestic supplies are seen way above buffer stock needs, Vijay Setia, president, All India Rice Exporters Association said. The government had banned export of non-basmati rice in 2007 to contain price rise, but has been selectively allowing exports of small quantities via diplomatic channels.

“This is the right time for the government to take decision on lifting the ban on superior non-basmati rice, not consumed by the poor, as the country has adequate supplies,” Setia said.

On Monday, a senior official said that owing to good procurement, the government’s food grain stocks had swelled to a new eight-year high of 60.43 million tonnes on June 1 compared to 53.5 million tonnes last year.

The official said the government’s rice stocks rose to 25.3 million tonnes as on June 1, up from last year’s 20.4 million tonnes.

Even after accounting for monthly consumption of around 3 million tonnes under state-run welfare schemes, the government would have more than double of its June 1 buffer stock requirement of 9.8 million tonnes.

Setia said expectations that the next rice crop would be better also supported an end to the export ban. According to government data, the kharif paddy acreage—boosted by timely onset and progress of monsoons—stood at 6,23,000 ha till last week, up nearly six per cent on year.

As of now, rice output in the new crop year is seen better than this year’s 89.3 million tonnes, on hopes of a good monsoon.

Basmati rice
Setia said that though the area under common grades of paddy was likely to rise in the kharif season, basmati acreage was expected to be similar to year-ago levels.

“It is difficult to predict the area under basmati rice for 2010-11 season because sowing is yet to commence. But I am confident that the area will be similar to last year’s,” he said.

In 2009-10, basmati was planted over around 1.6-1.7 million ha. Punjab, Haryana and Uttar Pradesh are the main basmati producing states in the country. Setia said basmati output and exports too were seen around last year’s levels. India produced around seven million tonnes of basmati rice in the year ended Mar 31, as against five million tonnes in 2008-09, and exported around 3.2 million tonnes.