‘Diplomacy behind export of rice by PSU’

“Any reduction in the availability of broken rice in domestic market may have an adverse impact on prices of cattle and poultry feed as maize price continues to rule high,” the officials pointed out to the EGoM at the meeting.

However, to address this concern, the EGoM has asked the Department of Food & Public Distribution to determine and notify the specifications of broken rice that would be allowed for exports, with the decision on timing the exports to be taken by the department in consultation with the Ministry of External Affairs.

“The actual exports should be spread over several months,” said the EGoM. Export ban on non-basmati rice, which was imposed in March to check rising prices and hence inflation, has led to a spurt in its international prices to Rs 50 a kg, and requests are pouring in from a host of countries including African nations for supply of rice.

As for commerce ministry’s proposal on lifting the ban on export of PUSA 1121 variety rice, EGoM said that the time was not ripe and the “position may be assessed in November” after harvesting and procurement of rice starts for Kharif Marketing Season 2008-09.

PUSA-1121 is the world’s longest grain but is categorised as superfine rice and not basmati whose exports are allowed beyond a certain price level. Rice growing states, especially Haryana, have asked for its inclusion in the basmati category and a consequent lifting of the ban as it fetches a premium from Gulf countries, Saudi Arabia and Iran.