Russia bans Indian rice over health concerns

Russia has banned import of rice from India, the country's biggest supplier, after it found a banned pesticide in shipments from the South Asian nation.

"The Russian side has stated the detection of dimethoate pesticide as reason for the ban, Minister of State for Commerce Jairam Ramesh said in a written reply to a question in the Parliament.

A halt in purchases by Russia comes at a time when exports from India, the world's second-biggest grower of the grain, are expected to fall this year as a stronger rupee makes shipments less competitive. India will contest the ban because Russia's government had agreed to hold off the restriction until November.

"We don't know the provocation for the early ban,'' Vinod Kaul, assistant general manager at the state-owned Agricultural and Processed Food Products Export Development Authority said. "Sales to Russia are a fraction of our total exports. It's a question of denying market access and we plan to contest it.''

India exported 24,955.54 tonnes worth Rs 28.8 crore to Russia in FY06. Exports to Russia have averaged about 50,000 tonne in the past five years, 1.5 per cent of the total 3.6 mt shipped from the country.