The Hindu Business Line : Is ban on non-basmati rice exports being flouted?

Mumbai, June 27 The Centre may have banned export of non-basmati rice and disallowed honouring of even pre-ban commitments; but export shipments are still going out of the country. It is estimated that about 25 to 40 container loads (up to 20 tonnes each) of non-basmati rice has been shipped out of Mumbai port, ostensibly shown as basmati rice.

This has been going on every month since export of the item was prohibited in February this year. Most of the cargo is destined for the US, both east coast and west coast ports.

Indian suppliers have been able to obtain a premium price for the non-basmati rice as the grain is being rationed in the US supermarkets.

Emboldened by regular supplies from India, American buyers have now begun to approach their familiar suppliers, some of them based in the south.

Losing business

Expressing anguish over unauthorised export of non-basmati rice, a south-based exporter told Business Line that he was deeply shocked that he lost his export business merely because he respected the law banning non-basmati rice export.

“We have invested in plant and machinery and also assiduously cultivated markets over years. Someone without integrity is walking away with our business and the enforcement authorities have taken no action,” he lamented.

At Kakinada

Another shocking revelation is from Kakinada port. Under the guise of maize (corn) export, a lot of non-basmati rice is being shipped out of the country. When contacted, service providers refused to comment.

Exports from Kakinada port too need to be investigated and plugged.

Following sharp increase in domestic rice prices, the Commerce Ministry banned export of non-basmati rice, and steeply raised the minimum export price for basmati rice a few months ago.

The Agriculture Ministry has claimed production of a record rice crop of 95 million tonnes in 2007-08; yet domestic prices are high and exports are prohibited.

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