Inter-ministerial differences have cropped up on lifting of ban on non-Basmati rice exports in the wake of delayed monsoon and large requirement of foodgrains for providing food security to the poor.
The Agriculture Ministry is opposed to any bold measure on opening exports of rice, but the Commerce Ministry is pushing for lifting the 15-month old ban restricting the shipments to expensive grain.
The Commerce Ministry will soon send the proposal to allow export of non-Basmati rice, fixing Minimum Export Price of $1,100 per tonne. "By fixing an MEP of $1,100 per tonne, we can ensure export of premium varieties of non-Basmati rice," a senior ministry official said today.
However, Agriculture Secretary T Nanda Kumar disfavoured lifting of ban on exports of non-basmati rice and wheat saying the decision should wait till sowing is over.
"We should be careful in allowing export now. The decision on allowing export should wait till the planting of the Kharif crops is completed," Kumar said yesterday.
Earlier, Food and Agriculture Minister Sharad Pawar had also disfavoured allowing exports of rice and wheat for now as he wanted sufficient stock for the proposed scheme to provide foodgrains at Rs 3 per kg for the poor under the law.
However, the issue may be resolved by a Group of Ministers, expected to be formed soon. The decision was earlier deferred by the Empowered Group of Ministers in the previous UPA government.
If the government allows export via MEP, only a few non-Basmati varieties would be shipped as the premium Basmati export has an MEP of $1,100 a tonne.
The Centre has banned export of non-Basmati rice since April last year. But rice exporters have been demanding export be allowed by fixing an MEP so that the fair average quality grain, consumed by the poors, remains in the country while farmers get good returns for sowing premium varieties.
The Food Corporation of India and the other state agencies have procured record over 30 million tonnes of rice in the ongoing marketing season (October-September) on the back of record production of the foodgrain in 2008-09 season at nearly 100 million tonnes and higher support price to the farmers.
