The Hindu Business Line : Curbs on rice exports cause anguish in AP

Kakinada, Oct. 26 Rice exporters here are in distress following the ban on export of non-basmati rice, imposed by the Union Government earlier this month. The subsequent order of the Government fixing a minimum export price ($425 a tonne) for non-basmati rice issued on Thursday has not brought much joy to the exporters here.

Besides, there are certain other problems peculiar to Kakinada such as the lack of warehouses hampering the export of rice.

Except for a few varieties such as Swarna Masuri, the relief offered by the Union Government does not cover much of the rice exported from here, which goes to the African countries.

“It is not much of a relief. The old anchorage port here is dependent on the rice exports and the kharif crop is coming into the market. There is no really no danger of rice scarcity. The Union Government should review the decision and allow rice exports without these curbs,” says Mr M. Goplakrishna, MLA of Kakinada.

He said he had represented the matter to the Chief Minister, Dr Y.S Rajasekhara Reddy, and expressed the hope that positive action would follow in the interests of all sections.

Warehousing constraints

Compounding the problem of the rice exporters, an order was issued on Thursday that rice stored only in the port warehouses till October 10 could be allowed to be exported. But there is a problem with Kakinada port, as there is not much storage space available.

In fact, the port godowns can only accommodate 50,000 tonnes or so and at present only 7,000 tonnes is stored in the port warehouses. The rest is stored in private godowns in and around the port town.

That rice is not covered by the order issued by the Union Commerce Ministry. The port officials refused on Thursday to allow the export of rice stored in private godowns.

It is estimated that rice worth Rs 350 crore is stored in and around the port town, the bulk of it in private godowns.

More Stories on : Rice | Exports & Imports | Andhra Pradesh

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