Private traders demand a slice of non-basmati exports

Private traders have sought a share in about 2 million tonnes of non-basmati rice that the Centre has decided to ship abroad through state-owned trading firms.

“We urge the Centre to throw open trade and allow us, and not just PSUs, to export non-basmati from the quantity earmarked for overseas shipment,” All India Rice Exporters Association Chairman Prem Garg said. The Centre had in April 2008 slapped a ban on the export of non-basmati rice, which is still in force, to contain surging inflation.

However, it decided to export up to 2 million tonnes only through state-owned firms STC, MMTC and PEC to friendly countries, which have approached through diplomatic channels.

This apart, in October 2008, the Centre had allowed the export of 55,000 tonnes of rice to African nations, which takes the total quantity earmarked for overseas shipment to 2.05 million tonnes, the association said.

While the notification for the export of 1.05 million tonnes has been issued by the government, that for 1 million tonnes is yet to be made, exporting house Shri Lal Mahal Ltd Vice President (Corporate Affairs) V K Bhasin said. The notification process must be expedited and private players should be allowed to export, Bhasin added.

Out of the 1.05 million tonnes notified to be exported to four African countries, the PSUs have so far exported only 15,000 tonnes, rice exporter Emmsons International Ltd Managing Director Anil Monga said.

Allaying apprehensions of a below-normal monsoon this season affecting production and, thereby, denting supply in the domestic market, the association said the country has enough stocks. Moreover, lack of storage space can create problems for keeping new crops.

The association said while India is projected to have produced about 99 million tonnes of rice in the 2008-09 season, the Food Corporation of India, has a carry-over stock of 18 million tonnes from the previous season, taking the total supply in the domestic market to 117 million tonnes.

India needs 93 million tonnes of rice for its annual domestic consumption, it said, adding that there are still 25 million tonnes of surplus rice in the country’s kitty.