Top food exporters ease restrictions

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Javier Blas brFT Syndication ServicebrLONDON Top food-exporting countries including India and Kazakhstan have relaxed their trade restrictions on agricultural commodities such as rice and wheat in a move that could help to ease a year-long food crisis. brIndia said last Thursday it would allow exports of top-grade aromatic rice from mid-October, although it imposed a minimum price of $1,200 (euro836, £679) a tonne. brThe move is the first easing of India's rice trade restrictions since the country imposed an export ban on non-basmati rice in April. brKazakhstan, one of the world's 10 largest wheat exporters, allowed its suspension of overseas wheat sales, in place since late April, to expire on Monday. brHowever, it imposed a fresh ban on its less significant soya exports. brEarlier this year, a series of trade restrictions - from Argentina banning soya exports, to Russia stopping shipments of wheat - sent food prices soaring and triggered panic buying by importers concerned about scarce supplies.brThe restrictions were made in an effort to keep local markets well supplied in the face of sharply rising food prices.brThe moves by India and Kazakhstan follow decisions by Vietnam, Ukraine and Russia to relax or even remove their bans on agricultural commodities exports and are helping to improve global food supplies, say analysts. brConcepción Calpe, an economist at the United Nations' Food and Agriculture Organisation (FAO) in Rome, said while the supply of agricultural commodities such as rice was improving, the food supply system was still under stress. We are still very cautious, she said. brThe monthly FAO food index, a global benchmark for agricultural commodities wholesale prices, fell in August to 213 points, the lowest level since January but still up 37 per cent over the past 12 months. brNew Delhi's decision is likely to be welcomed by Middle East countries, traditional buyers of premium rice. India's higher grade varieties of rice are usually exported, with the local market absorbing medium and low grades. brRice traders warned that the move was not an indication that all India's rice exports were about to be resumed. In an average year, India is the world's third-largest rice exporter, after Thailand and Vietnam. Ben Savage, of Jackson Son & Co, the London-based rice brokerage, said India was likely to maintain its rice trade restrictions until next year due to the political sensitivity to high inflation ahead of a general election. brHowever, India could grant further concessions to export rice to some friendly countries, Mr Savage said. brThai medium-quality rice, the global benchmark, was last Thursday at about $730 a tonne, down from a record of more than $1,100 a tonne in May but still significantly higher than the $200-$300 range during 2000-07.br