India to allow export of 0.5m tonnes rice

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Visiting Indian External Affairs Minister Pranab Mukherjee Saturday called on Chief Adviser Dr Fakhruddin Ahmed and conveyed his government's decision to waive the ban on export of rice to Bangladesh, partially, and willingness to rebuild 10 severely cyclone-hit villages, reports UNB.
The Chief Adviser thanked the Indian minister for the good gesture of the government of India.
India has decided to waive the ban on export of an additional 500,000 tonnes of rice to Bangladesh and proposed its willingness to adopt 10 severely affected coastal villages for rehabilitation, Mukherjee informed the Chief Adviser at his office in the morning.
Briefing the Indian minister about the huge loss and damages inflicted by the November 15 Cyclone Sidr, Dr Fakhruddin said two economic losses have taken place -- loss of production and cost of long-term rehabilitation programme. The cost is being estimated.
He also mentioned the government's various rehabilitation programmes in the cyclone battered areas and said they are trying to rehabilitate the cyclone victims as soon as possible, according to Chief Adviser's Press Secretary Syed Fahim Munaim who was present at the meeting.
The Indian Minister thanked and expressed gratitude for Bangladesh's wholehearted support to the Indian candidate becoming Secretary General of the Commonwealth in the just concluded CHOGM 2007 in Kampala, Uganda.
After holding meeting with Foreign Affairs Adviser Dr Iftekhar Ahmed Chowdhury, Pranab Mukherjee admitted that Bangladesh suffer "adverse trade imbalance" with India and assured steps to remove what he called 'trade distortion'.
"I know the huge trade discrepancy… We are importing less from Bangladesh but exporting a higher volume," he told reporters.
Pranab said two-way annual trade between Bangladesh and India is around US$ 2.0 billion of which Bangladesh imports most while India imports less.
"We are examining how to reduce duties on Bangladeshi export products," he said, adding that the Commerce Secretary level committee of the two countries is working on how to reduce the number of products from the negative list of India to increase export from Dhaka to the Indian market.
Referring to Prime Minister Dr Manmohan Singh's earlier commitment made at the 14th SAARC summit in New Delhi, the Indian External Affairs Minister said India is going to issue a notification by December 31 this year to allow duty-free imports from SAARC LDCs.
He mentioned the recently signed MoU under which India will import US$ 8.0 million worth of readymade garments from Bangladesh without any duty.
"There has been trade distortion and it will be removed… We believe our trade relation will gradually improve", he assured.
On Joydevpur-Shialdah train service, Pranab said the passenger train service would begin with the resolution of some technical problems that are now being worked out. Besides, discussions continue on opening more communication routes between the two close neighbours.
He said the two countries believe that whatever problems are there could be resolved through discussions and understanding.
On his arrival at Zia International Airport, the Indian minister announced lifting of restriction on an additional export of 500,000 tonnes of rice to Bangladesh and rehabilitation of 10 villages severely affected by Cyclone Sidr.
The Indian government earlier banned export of rice in view of the production loss and domestic requirements.
Pranab said India would have a very small quantum of rice surplus this year in view of the production and the requirement.
There may be deficit as the Indian government has launched the Public Distribution System for last 4-5 years to feed the disadvantaged section of society.
However, in view of the cyclone that has caused extensive damage to standing crops particularly the "Aman" paddy in the coastal districts where the main crop is Aman, the Indian government decided to lift the restriction on export of five lakh tons of rice to Bangladesh.
"I'm a man from Bangla, I'm familiar with the crop production system.
We've taken the decision only considering Bangladesh," he said.
Pranab said the private sector here would now discuss with the Indian authorities how to import the rice.
Besides, he said, as a token India wants to rebuild 10 worst- hit villages to be selected by the Bangladesh government. "We will do whatever is needed repairing roads, dams, schools or electric lines in those 10 villages."
The Foreign Adviser appreciated the India's generosity towards Bangladeshi people at this hour of need.
Later, at a press conference in Dhaka, Pranab Mukherjee said India strongly suggested that the international community should address the issue of climate change very seriously and find ways of tackling the adverse impact on low-lying countries like Bangladesh, as a devastating cyclone lashed the delta once more.
"I don't know about compensation…It may be very ideal, but who will compensate whom," said Pranab, who gathered a firsthand view of the battered coastal areas during his daylong tour of Bangladesh.
He noted that since the Kyoto conference, they have tried to impress upon industrialised countries to undertake the responsibility and fulfil their commitments made at the 1997 meet. But a number of countries have not yet fulfilled their commitment.
"So, we expressed our desire that we should be compensated because of these incidents for which we are not responsible."
He said Indian State of Orissa had experienced similar natural disaster in 1990 and later its southern region for tsunami.
Pranab observed that low-lying lands near the coast would be vulnerable due to sea level going up and these events could take place in future as well.
"This is an area where we shall have to work together," he said, adding that the forthcoming Bali world conference on climate change should be able to find out some solutions to the problems.
Referring to several international conferences on this issue-one sponsored by the UN secretary general and another by US President Bush-he said the international community was aware of it but " you will have to work out how to tackle the problem".