India agrees to export rice to Lanka
Sunday, 4 November 2007
COLOMBO, Nov 3 (PTI): Acceding to the request of Sri Lankan President Mahinda Rajapaksa, India has agreed to export 6,000 metric tonnes of rice to the island nation, which is reeling under high inflation due to spiralling food prices.
The contracted stock of ponni samba rice, which was held back in Tutocorin and Chennai harbours after New Delhi imposed restrictions on export of rice, is expected in Sri Lanka by next week, private traders said adding it is expected to have a softening impact on prices in that country.
Gains in prices of wheat, a competing cereal, prompted some consumers in India - the world's second-most populous nation - to have more rice, reducing the amount available for export to the Middle East, West Africa and Sri Lanka.
Analysts forecast rice exports from India, the world's second-biggest grower of the grain, may fall this year as appreciation of the rupee make overseas shipments less competitive while domestic consumption increases.
Though the Sri Lankan government permitted the wholesale importers to import rice this month, India did not consent to export the commodity due to domestic constraints.
Sri Lanka has exempted the Rs.20 per kilo import tax on rice and hopes to import 75,000 metric tons in two varieties before the end of this month. Consumer inflation in the island country at present stands at 17.3 per cent.
The contracted stock of ponni samba rice, which was held back in Tutocorin and Chennai harbours after New Delhi imposed restrictions on export of rice, is expected in Sri Lanka by next week, private traders said adding it is expected to have a softening impact on prices in that country.
Gains in prices of wheat, a competing cereal, prompted some consumers in India - the world's second-most populous nation - to have more rice, reducing the amount available for export to the Middle East, West Africa and Sri Lanka.
Analysts forecast rice exports from India, the world's second-biggest grower of the grain, may fall this year as appreciation of the rupee make overseas shipments less competitive while domestic consumption increases.
Though the Sri Lankan government permitted the wholesale importers to import rice this month, India did not consent to export the commodity due to domestic constraints.
Sri Lanka has exempted the Rs.20 per kilo import tax on rice and hopes to import 75,000 metric tons in two varieties before the end of this month. Consumer inflation in the island country at present stands at 17.3 per cent.