By NNN-PTI,
New Delhi : India, the second-largest rice producer, sold about 29 lakh tonnes in the global market in January to September 2008 amid a restricted environment created by the government to control domestic rice prices.
Even though the exported quantity was small, shipments of rice, both basmati and non-basmati, continued to destinations like Saudi Arabia, Bangladesh, the UAE, and Sweden, according to the data compiled by the US Department of Agriculture (USDA). (One Lakh: Ten million)
India exported about 29 lakh tonnes of rice during January to September 2008, of which non-basmati accounted for 19 lakh tonnes and basmati 10 lakh tonnes.
The analysis of the export data showed that India made a modest beginning in January 2008 by shipping 6.6 lakh tonnes of rice, and that, however, fell steeply in the consecutive months.
Industry experts attributed a falling trend in rice export to government measures, which were announced frequently during the time when the country’s inflation skyrocketed to double-digit level.
“Concerns about food price inflation prompted the Indian government to impose various restrictions on rice exports, both basmati and non-basmati, over the past fifteen months. Export conditions for both basmati and non-basmati have undergone several changes during this period,” USDA said.
In order to control domestic rice prices and step up supplies, India increased the minimum export price (MEP) of non-basmati rice to 650 dollars a tonne from 500 dollars a tonne in the last one year.
The increased MEP affected export badly. A further dent in exports was seen when a ban was imposed in April 2008, except for a few countries. Non-basmati rice was exported largely to Bangladesh.