Rice stocks up on Russia lifting ban on imports from India

Stock of Kohinoor Foods jumped 10% to Rs 36.85 a piece on BSE

The share price of rice milling and trading companies moved up about 10 per cent on Tuesday, due to Russia lifting its ban on rice import from India.

The stock of Kohinoor Foods jumped 10 per cent to Rs 36.85 apiece on the BSE on Tuesday. Stocks of other companies in rice milling and exports business, too, rose in tandem.

 

Russia announced lifting of rice import ban from India after nine months following a guarantee by Anand Sharma, Union Minister of Commerce to Russian authorities for taking control of pests. 

 

Following Russia lifting its import ban, Indian exporters will be able to send consignments of rice, rice cereals and peanuts to Russia with immediate effect. Russia had banned import of rice, rice cereals and peanuts from India in December 2012 following “khapra beetal ( Trogoderma granarium), one of the world's most destructive pests of stored grain products and seeds, was discovered in a few consignments in early 2012. 

 

The opening of exports market came at a time when the government of India is pursuing exporters.

 

“Although Russia is not a big market for Indian rice exports, opening up of this market will surely make a positive difference for exporters here,” said Gurnam Arora, joint managing director, Kohinoor Foods.

 

The ban had earlier strained trade relations between India and Russia. In June, the Federal Service for Veterinary and Phytosanitary Surveillance (FSVPS) delegation from Russia visited India between June 23 and 30 this year, the Ministry of Foreign Affairs of the Russian Federation was convinced with the report submitted to it. Following that, the Ministry was supportive.

 

Total basmati rice exports to Russia was witnessed at 789.19 tonnes during the financial year 2012-13 before the Russian authorities suspended imports of Indian rice in December 2012. Against that total basmati rice shipment to Russia was recorded at 337.13 tonnes in the financial year 2011-12.

 

Similarly, parboiled and other such variety of rice exports to Russia recorded at 55825.60 tonnes and 6425 tonnes in 2012-13 as compared to 5598 tonnes and 3565 tonnes respectively in the previous year.