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The Andhra Pradesh Rice Exporters' Association is of the opinion that the minimum export price fixed by the Union Government for non-basmati rice exports at $ 400 a tonne is quite reasonable. Therefore, there is no need for a hike as demanded by the President of the All-India Rice Exporters' Association, Mr Vijay Sethia.
In a statement issued on Friday, Mr Vinod Agarwal, President of the Andhra Pradesh Rice Exporters' Association, said the demand voiced by Mr Sethia was not in consonance with the ground realities in Andhra Pradesh, Chhattisgarh, Orissa and Maharashtra.
“There is a glut here and farmers are unable to sell paddy. The FCI is not procuring and rice millers are in no position to take any more rice. The disgusted farmers are observing crop holiday in parts of East Godavari and West Godavari districts. In such a situation, only if we export rice, can we rescue the farmers and the millers. The MEP fixed by the Union Government is quite reasonable,” he said.
He said that there was no substance in the fears voiced by Mr Sethia that exports at low prices would bring down international prices. Vietnam, Pakistan and other countries were exporting rice at cheaper rates. The apprehension that rice meant for sale through the public distribution system would be diverted for exports was also not a tenable one, he said.
He wanted Mr Sethia to guide the Union Government properly in the matter. “For the past four years, the Union Government has imposed a ban on non-basmati rice exports and, at last, relented now. The results of the export ban are very visible now in the two Godavari districts in particular and the rest of AP. The farmer is not able to sell his crop and the miller is not able to carry on his business. Farmers are observing crop holiday and millers are closing down mills. Mr Sethia should be aware of the situation,” he said.
He said that out of one million tonnes of rice exports, roughly 4-5 lakh tonnes may be routed through Kakinada port.
He said it would bring some relief, but it would be grossly inadequate. “We feel at least two million tonnes of rice exports should be allowed from Andhra Pradesh alone to help the farmers and millers in the current market situation. In the glut situation, exports will not push up prices in the open market and the general public will not suffer. We can ignore market realities only at our peril,” he said.
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