The Hindu Business Line : Conditional nod for rice shipments from Kakinada

The rice stocks are stored in private warehouses outside the limits of the Kakinada town and the notification specifies that only stocks within the town limits should be considered for export.

Ch. R. S. Sarma

Kakinada, Nov. 7 The Union Government has given conditional clearance for rice shipments from Kakinada old port, nearly a month after imposition of ban on export of non-basmati rice, subject to the clearance by the State Government.

After the imposition of ban, a hue and cry was raised as the old port depends mainly on rice exports and the matter was represented by the Andhra Pradesh Chief Minister, Mr Y. S. Rajasekhara Reddy, to the Union Government. It was taken to the notice of the Centre that huge stocks had been stored in the warehouses in and around the port city for export purposes and contracts had already been signed.

MEP not beneficial

Subsequently, the Union Government had fixed a minimum export price of $450 per tonne for export of non-basmati rice, but it was not of much use to the trade or exporters here, as they could not meet the condition. Ships were stranded in the old port here and the trade had to pay heavy demurrages. Two or three ships left the old port without a grain of rice being loaded into them.

Finally, in response to the representation, the Director-General of Foreign Trade, Mr R.S. Gujral, issued a notification that rice stocks brought into the warehouses of Kakinada city till October 10 could be allowed to be shipped, subject to the certification of the State Government.

Grey areas

Mr R.V.L. Narasimha Rao, Assistant Commissioner of Customs, has said the instructions had been communicated to the district collector and it was for the latter to certify the stocks. “We will allow rice shipments strictly on the certification of the collector. We will permit shipment of rice both against commercial letter of credit and also against cash against documents and other modes of advance payment,” he said.

However, there are still certain grey areas. The rice stocks are stored in private warehouses outside the limits of the Kakinada town and the notification specifies that only stocks within the town limits should be considered for export.

The civil supplies authorities are seeking clarification on the point. After the imposition of ban, only one or two ships left the old port loaded with rice, as they had already been cleared by the Customs authorities. According to sources, 1.37 million tonnes of rice has been exported through the old port in the first half of the financial year and it is roughly estimated that three to four lakh tonnes may be allowed for export further.

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

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