Govt puts more restrictions on rice exports

The government has imposed further restrictions on export of non-basmati rice. According to a commerce ministry release, the Directorate General of Foreign Trade (DGFT) has increased the minimum export price (MEP) of non-basmati rice from $500 per tonnes to $650 per tonne.

Market sources said non-basmati rice exports were being contracted at $500-525 per tonne. The MEP of non-basmati rice was hiked from $425 a tonne in October 2007 to $500 a tonne in December 2007. Export restrictions were imposed to ensure availabilty of more rice in the domestic market.

The DGFT has also slapped restrictions on basmati rice exports by fixing an MEP of $900 per tonne. It has also imposed restrictions on the number of ports through which non-basmati rice can be exporterd. The release said export of non basmati rice would be allowed through only Kandla, Kakinada, JNPT and Kolkata ports.

"There was no need to slap MEP restrictions on export of basmati rice since the commodity is being contracted in the range of $1,3000-1,400 per tonme," said Prem Garg, vice-chairman, All India Rice Exporter Association and managing director of Lal Mahal Basmati.

Exporters say rice exports have suffered due to earlier restrictions. "With latest caps, rice exports will be further hit. About 100,000 tonnes of rice is stuck at various ports which the gvernment should allow to be exported," said Garg.