Commerce Ministry Proposes To Lifting Ban On Rice Exports

The commerce department has come out with a proposal that the Centre should either completely lift the ban on export of all rice or replace it with a partial ban allowing rice above the threshold limit of $400 per tonne to be exported. The ministry also said that all rice shipments lying in ports prior to October 15, when the ban was notified, should be allowed to be shipped. The proposal will be submitted to the Cabinet Committee on Economic Affairs (CCEA) for consideration.

The department has argued that there was no logic in not allowing high value rice from being exported as it was, in any case, not being procured by the Food Corporation of India (FCI). Since farmers will neither be able to sell such rice to FCI or export it, prices will fall sharply. The ban is going to penalise farmers of premium non-basmati rice, the official said. Reports have already started coming in about farmers in Punjab and Haryana complaining about a Rs 200-250 per quintal drop in prices of non-basmati rice.