DJ India Allows Export Of 450,000 Tons Rice To Bangladesh

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Sat, 19/05/2012 - 8:43 am.

DJ India Allows Export Of 450,000 Tons Rice To Bangladesh

NEW DELHI (Dow Jones)--India has allowed the export of 450,000 metric tons of non-basmati rice to neighboring Bangladesh as a one-time waiver of an earlier order banning all exports of such rice priced below $500 per ton, according to an official notification published Tuesday.

State-run trading firms State Trading Corp. (512531.BY); MMTC Ltd. (513377.BY); PEC Ltd. and the National Agriculture and Cooperative Marketing Federation, will export 100,000 tons each, while the provincial body in the eastern province of West Bengal will export the remaining quantity of rice, the notification said.

The statement didn't give any reason for the waiver of the partial ban on non-basmati rice exports.

India had imposed a blanket ban on all non-basmati rice exports in October to shore up local supplies.

However, it later relaxed the ban and allowed exports of only those varieties of rice that were priced above $500 per ton in the international markets on a free-on-board basis, due to strong pressure from traders and farmers groups.

Recently, federal farm minister Sharad Pawar said he wasn't in favor of a blanket ban on all rice exporters as that would hurt the interest of growers.

India annually purchases around 26 million-27 million tons of rice from farmers to run its subsidized food programs and also to maintain a minimum buffer stocks requirement.

-By Sanjeeb Mukherjee, Dow Jones Newswires; +91-11-4120-7627;
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