Centre may relax rice export ban post harvest
Members of trade and commerce feel that the ban on exports was imposed due to political compulsions
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Visakhapatnam/Kakinada With improvement in rice stock position and prospects of further availability of non-basmati white rice after harvest of the new season from October, the Central Government is expected to relax restrictions imposed on exports.
Members of trade and commerce, by and large, feel that the Ministry of Consumer Affairs imposed the ban on exports of certain rice varieties due to political compulsions with fast approaching elections next year.With surging demand for wheat in the rest of the world following the denial of an extension to the deal that allowed for the smooth passage of Ukrainian wheat through the Black Sea, authorities expected a significant increase in demand for rice in overseas markets.
India is the largest exporter of rice to the rest of the world and accounts for almost 40 per cent of the export market. Last year, India exported a quantity of 22.5 million metric tonnes. Though many of the rice-growing States including Andhra Pradesh are now hit by rain-triggered floods, the yield in the new season is expected to be more than the normal.
The State-run warehouses at present have nearly 40 million metric tonnes of husk variety of rice. This is expected to go up in the new rice market year.
The Food Corporation of India (FCI) had procured 84.6 million metric tonnes of paddy from the farmers in 2022-23 as against harvest of 135.5 million metric tonnes, according to sources in the Ministry of Agriculture and Farmers' Welfare. The procurement year-on-year increases marginally. With near-normal rainfall in July-August, the production is also expected to be good during the harvest season. During the pandemic, the government had also increased the distribution of rice free of cost to those who lost their livelihood on account of lockdowns.
Managing Director of PattabhiAgro Foods, Kakinada, Krishna Rao, told Bizz Buzz that with improvement of inventory levels with fresh procurement post-harvest, the government may consider some sort of relaxation in the restrictions imposed on export of rice during the year-end. Kakinada is the largest centre for rice exports. With heavy congestion at the Kakinada Anchorage Port, the government has already given permission last year to open the Deep Water Port to handle rice shipments so as to reduce the congestion.
Sudhir Mulagada, a foodgrain exporter from Visakhapatnam, said at present, an uncertain situation continues but if the stocks increase, the government will certainly lift the restrictions. He said fearing food insecurity following certain developments, the government had banned export of non-basmati white rice.
Managing Director of Sravan Shipping Services G Sambasiva Rao said with change in dynamics, the rice exports might resume after a few months. He said the new rice market year is expectedto fetch good yield.
