India cancels tender to import 30,000 tonnes of rice
Tuesday, 24 November 2009
NEW DELHI, Nov 23 (Commodity Online): In a significant move, India has cancelled tenders to import rice despite a harvest shortfall following the worst monsoon in almost four decades.
This decision to cancel tenders to import a total of 30,000 tonnes was taken at a top level cabinet committee on food which met here Friday.
The imports would have been the first since the 1980s, but it is believed the government balked at the high prices currently being sought for the commodity.
The tender of about 15 million tones had been discussed with Thailand and Vietnam but global prices rose after India announced it was entering the market.
The tenders had been floated by state-owned trading firms MMTC, State Trading Corp and PEC. The three state trading firms had been asked to import 10,000 tons of rice each.
India produced a record 99.15 million tonnes of rice last year. Global prices rose after India announced it was entering the market.
India is the world's second-largest rice producer and the shortfall comes after bumper harvests in the two preceding years.
This decision to cancel tenders to import a total of 30,000 tonnes was taken at a top level cabinet committee on food which met here Friday.
The imports would have been the first since the 1980s, but it is believed the government balked at the high prices currently being sought for the commodity.
The tender of about 15 million tones had been discussed with Thailand and Vietnam but global prices rose after India announced it was entering the market.
The tenders had been floated by state-owned trading firms MMTC, State Trading Corp and PEC. The three state trading firms had been asked to import 10,000 tons of rice each.
India produced a record 99.15 million tonnes of rice last year. Global prices rose after India announced it was entering the market.
India is the world's second-largest rice producer and the shortfall comes after bumper harvests in the two preceding years.