:. Food Industry News


India Considers Rice Supplies to Neighbours

Source: Reuters
07/05/2008

New Delhi, May 7 - India will decide by June whether to allow limited rice exports to some neighbouring states which have called for shipments to resume, but has no plans to significantly relax export curbs soon, a top food ministry official said.

Daily News Alerts

India, the world's second-biggest rice exporter in 2007, began imposing restrictions on overseas sales last year.

It finally banned non-basmati shipments in March, one of a series of protectionist measures that triggered a wave of panic buying, causing benchmark Thai prices to nearly treble to over $1,000.

"There are some requests from certain countries at diplomatic levels," T. Nand Kumar, the country's food secretary, told Reuters in an interview, the first time an Indian official has acknowledged pressure from other governments to resume sales.

"I suppose they will be looked at rather than an open thing on exports."

The pressure on New Delhi underscores the growing anxiety around the world over food supplies at a time when the price of most staple crops has doubled or more in the past year, fuelled in part by suppliers moving to fight domestic inflation by forcing farmers and traders to keep more supplies at home.

"There are so many requests pending. We have to take a very close look at what is available," Kumar said, adding that the sales volumes would be small, totalling much less than 1 million tonnes.

He declined to specify which countries had asked New Delhi to allow exports, but said they were either neighbours or countries with which India had a "strategic interest".

Indian rice is normally sold to big Middle Eastern buyers like Iran, Iraq and Saudi Arabia, all important suppliers of crude to Asia's third-largest economy.

India has already allowed exports of about 400,000 tonnes to Bangladesh, equivalent to about one-tenth of last year's total shipments, and some to Nepal and Bhutan.

He said the government was likely to maintain restrictions on most exports until October, when new season rice would be harvested, despite early indications that the spring crop will be more than enough to meet domestic needs.

Apprehending a sharp rise in overseas sales, India banned exports of non-basmati rice in March and slapped an export tax of 8,000 rupees ($200) per tonne on basmati shipments.

Kumar said India might consider lowering the minimum export price of $1,000 per tonne that it has fixed on basmati rice exports but only if global prices ease.

"Looking at food security across the world in the past two years, I think we'll have to take a very clear line about how much we can export and how much we cannot," he said.

WHEAT STOCKS

India is also likely to take advantage of this year's bumper wheat harvest to set up a government-run stockpile of up to 3 million tonnes, Kumar said, confirming for the first time New Delhi's plans for a strategic reserve.

He said the government could make a decision on whether to proceed by mid-June, once the full wheat crop has come to market, confirming for the first time local media speculation about plans to develop a government-held reserve.

"A similar quantity of rice may be for later, not immediately," he added.



GO   View more articles on this subject

Email This Article To A Colleague     Print A Copy Of This Page
 
 
 
 
FLEXNEWS - Business News for the Food Industry

About Us | Contact Us | Terms & Conditions | Privacy Policy
 
Daily News Alerts
Related Items
India May Ease Rice Curbs; Supply Worries Linger
Basmati Rice Prices Soar, Set to Remain High
India Says Rice, Wheat Stocks Adequate and Growing
India Might Ban Basmati Rice Exports to Tame Inflation...
India's 07-08 Rice Output to Top 94 Million Tons -...
India May Ease Rice Export Controls - Trade
India 2008 Basmati Rice Exports Likely at 1.2 Million...
India Cuts Duties, Bans Rice Exports to Ease Prices
India Basmati Rice Export May Not Be Hit by Government...
India Lifts Rice Export Floor Price, Aims to End Sales

More in Food Industry News
Nestle Aims for Faster Growth in Eastern Europe
V&S and Fortune Far Apart on Jim Beam Stake Price
Israel Citrus Semi Annual 2008
ThaiBev to Buy 43.9% Stake in Japanese Restaurant Group...
Thai Beverage Public Company Limited: Financial Statement...
FAO Sees Food Prices Staying High for 2-3 Years
Fonterra to Double Yoghurt Output at Sri Lanka Plant
Fortune Brands CEO Bullish on Drinks, Housing
New Scientific Studies Establish the Safety of Rebiana,...
EU Import Restrictions on Indian Guar Gum Come into...

Top Headlines
Method to Prepare a Stable High-Load Paprika Extract...
Encapsulation Method: a Patent
Enhanced Fiber Additive and Use
Hydroxydeoxybenzoins and the Use Thereof to Mask a...
Nestle Aims for Faster Growth in Eastern Europe
ThaiBev to Buy 43.9% Stake in Japanese Restaurant Group...
V&S and Fortune Far Apart on Jim Beam Stake Price
Fortune Brands CEO Bullish on Drinks, Housing
Fonterra to Double Yoghurt Output at Sri Lanka Plant
New Scientific Studies Establish the Safety of Rebiana,...
EU Import Restrictions on Indian Guar Gum Come into...
Rural Affairs Minister for Wales Officially Inaugurates...
Baltika Develops Business Abroad
Cyclone Damage to Myanmar Rice May Flare Prices
SunOpta Provides Ongoing Update on Activities Related...
Olam International Reports 38.5% Growth in Q3 FY2008...
Luzhou Bio-chem Technology Limited: Earthquake in Sichuan
Cadbury Sees Strong First-Half, Shares Rise
Asia Pacific Breweries Builds a New Brewery in Guangzhou...
San Miguel Q1 Net up 150 pct yr/yr on Gains
Chinese Food Exports to US Top US$4 Billion in 2007
Campari Group: 2008 First Quarter Results
Coca-Cola Amatil Trading Update
Penford Food Ingredients Licenses Resistant Potato...
Unilever Says New Milkshake Helps Control Appetite
Parmalat: The Board of Directors Approves the First...
Mexico Group Warns Tortilla Prices to Jump
Trial Set to Start in Parmalat Case vs Citigroup
SABMiller Reports Strong Rise in Earnings
Nestle Waters North America Proposes Smaller Bottling...
Anheuser-Busch to Terminate Its U.S. Importing Rights...
Fortune Brands' Court Action to Have No Impact on V&S...
Future Expansion and Acquisitions Are the Next Step...
Performance Food Group Company Shareholders Approve...
UK: Unilever Pot Noodle Plant in Wales for Sale at...
US: Two Food and Beverage Plants to Be Built in Amana
Scandinavian and British Dairy Farmers Unite in Joint...
Glanbia plc: Interim Management Statement


 


FLEXNEWS 2008 - All rights reserved
ISSN 1950-6228