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India to review ban on rice, wheat export
Sunday, 06.01.2008, 10:22pm (GMT-7)

 NEW DELHI: Food and Agriculture Minister Sharad Pawar says the UPA government will review a ban on wheat exports and curbs on overseas sales of basmati rice, but shipments of other grades of rice will not be allowed at least until November.

The minister said that smooth domestic supply was a priority for the government, which has curbed exports of wheat and rice, banned futures trading in some commodities and cut import duties to improve stocks and relieve price pressures. India last exported wheat in 2004 and became an importer in the past two years, but a bumper crop has helped the government purchase from local farmers rise well above the record 20.6 million tonnes bought in 2000. Pawar said that a government panel, called the empowered group of ministers (EGoM), would soon consider lifting the ban on wheat exports. "We will think.

There is an EGoM. We will discuss it in the EGoM," he said. Pawar said India had about 5.8 million tonnes of wheat on April 1 against a target of 4 million tonnes and the record procurement had helped stocks swell so much that the government had enough supplies to run welfare schemes for 21 months.

But controls on non-basmati rice exports would stay at least until November, when summer-sown paddy would be harvested as the government would take no chances with domestic supply, he said. Cambodia has lifted a two-month ban on rice exports, becoming the first Asian nation to relax recently imposed restrictions.

The United Nations' Food and Agriculture Organization has raised its rice output forecast for 2008 by 1 million tonnes to 667 million tonnes on the back of improved outlook from Cambodia, but said food prices would remain high for a decade. Pawar said he favored easing basmati rice exports as the premium grade of grain was either exported or consumed by the rich, not used for subsidized supply to the poor.

"If farmers want to earn a little bit of money, basmati is the crop where they can earn some money. Not a single grain of basmati comes to my kitty for the public distribution system," he said. Rice exporters say government's changing policies and a tax on basmati exports had reduced overseas sales to a trickle. Pawar said rival suppliers may push out India from the international basmati market if exports did not pick up and that would hurt Indian farmers, who would find it difficult to regain their market share.

He said the government was keen, but not in a hurry, to help neighboring countries, which have asked India to supply rice. "For the time being, no. We are eager to help. I have got requests from many neighboring countries. Procurement will take at least three months to get completed and then we will assess the situation," he said.
-Agencies

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