Want to sell rice internationally, but not interested in certifying the quality. That's the stand the All India Rice Exporters' Association (AIREA) intends to take in response to the government's recent proposal that trade associations of various agro commodities should be given the power to set standards and certify the quality of their products both for the domestic and international markets. The rice trade, constituting the largest chunk in agro exports, is the first to have been asked by the Centre to constitute a certifying body. AIREA however, thinks that Indian rice exporters are in a sellers' market and can indirectly dictate buyers in buying any quality of rice they sell, and that too at whatever price they offer. It is this total freedom and relative monopoly (over basmati rice that Indians enjoy) that the AIREA wants to retain for eternity. But in an increasingly competitive world that demands authentication on quality, This stand of the AIREA is unlikely to hold water for long.USA's RiceTec Inchas challenged this hegemony of the AIREA, by claiming from the US patent office a patent on India-like aromatic rice called Texmati. With this the entire Indian community - not just the rice exporters - is up in arms against RiceTec. So much so that members cutting across party lines have expressed serious concern over the patenting of basmati by Ricetec and wants the government to take effective steps to get the patent cancelled. On its part, the government has appointed an inter-ministerial committee to prepare a challenge paper for revocation of patent of basmati rice by RiceTec, industry minister Sikander Bakht formally told the Lok Sabha on Friday last (May 29). Bakht said the revocation has to be carried out under the US Patents and Trademark Law and the Government of India could consider filing a case in a US court soon. In April-November 1997, India exported a total of 3,58,000 tonnes of Basmati rice valued at Rs 985.90 crore in foreign exchange, 12 per cent up from previous year's 320,000 tonnesvalued at Rs 734.65 crore. In 1998-99, these figures are expected to jump further by around 20 per cent, industry sources maintain. AIREA hopes to cross 7,00,000 tonne figure by 2000, traders say.Sounds impressive. But two aspects are being shoved aside by AIREA. Quality, and price, both of which leaves a lot to be desired. One pointer in this direction is the indiscriminate pricing policy adopted by the Indian basmati rice exporters, which completely conceals the quality. In April-November 1997, quantity-wise basmati rice exports were up 12 per cent, but the unit price (price per kg) shot up over 35 per cent. The price for so-called basmati rice exported to say Bangladesh, for example, is higher by almost Rs 20,000 per tonne charged to importers of Saudi Arabia, the largest importer of Basmati rice.This is just one instance of indiscriminate pricing. It is because of this that the government feels it is necessary that the trade associations take responsibility of quality and price for the agro productsexported by members of the respective associations. Realising the need for quality certification in a highly competitive world, The Spice Board, the Kochi-based official body set up by the government to monitor and boost spice exports, initiated last year a quality certifying exercise, if not a full-fledged body. The Spice Board permits the use of the new umbrella logo - Indian Spices - to those exporters who meet stringent quality norms fixed by the board in consultation with the spice exporting community. Also, the board even helps its members to attain the high quality standards. This exercise gives a much better image to the already well-accepted Indian spices in the world market.But the Spice Board members do not think they are in a sellers' market as members of AIREA. Therefore, in their own interest they have agreed to undergo severe quality test by Spices Board. The Indian Spices Quality Logo does lend them a credibility never enjoyed ever before. AIREA president Arora complains of delays inshipments if the goods are to be routed through the Export Inspection Agency and take the Agmark logo. Also, it may be wrong on the part of exporters to conduct checks on their own brethren, says Arora, as `it may reveal trade secrets without leading to any appreciable improvement in the quality of rice exports'. Arora wants the government to verify the quality of goods exported and help the rice exporting trade to evolve its own control mechanism over a period of time. But self-evaluation, like self-regulation, is a desired trait in any commercial activity. More so, in a highly competitive and a globalising world, where exporters need to follow mutually acceptable high quality standards. Government's role is to offer hassle-free trading environment, not to check quality of exportable goods.
