India set to exempt Africa from rice ban
Wednesday, 4 June 2008
Joe Leahy in Mumbai and Amy Yee in New Delhi, FT Syndication Service
India is facing growing pressure from African countries to exempt them from export bans on rice implemented by New Delhi to curb domestic food price inflation.
The pressure illustrates how efforts by large producers such as India to control a sharp rise in food costs are hurting poor nations and giving rise to a form of rice diplomacy.
I have a minister from Mali [here]," said Kamal Nath, India's commerce and industries minister, in an interview with the Financial Times. "They are traditional buyers of rice so when we banned the export of our cheaper medium-quality rice, they [were] in trouble."
Global food prices are expected to remain high over the next decade, spelling hardship for millions of the world's poorest, the United Nations' Food and Agriculture Organisation (FAO) and the Organisation for Economic Co-operation and Development (OECD) said in a report late last month.
Mr Nath said India had already allowed some exports to Sierra Leone and would consider other exemptions for Africa. "We will have some carve-out to African countries depending on our own current production," he said.
He did not give details but there is speculation that India may eventually export about 2.0m tonnes of rice to the least developed African countries as well as some neighbouring nations, including Bangladesh, Nepal and Bhutan.
India's economy continues to grow strongly, reaching a rate of 9.0 per cent in the last fiscal year, according to government figures released last Friday.
The new report predicted growth of 8.5 per cent this year but the rising cost of fuel has contributed to a sharp jump in inflation. In the 12 months ended May 17, it reached 8.1 per cent, a 3
India is facing growing pressure from African countries to exempt them from export bans on rice implemented by New Delhi to curb domestic food price inflation.
The pressure illustrates how efforts by large producers such as India to control a sharp rise in food costs are hurting poor nations and giving rise to a form of rice diplomacy.
I have a minister from Mali [here]," said Kamal Nath, India's commerce and industries minister, in an interview with the Financial Times. "They are traditional buyers of rice so when we banned the export of our cheaper medium-quality rice, they [were] in trouble."
Global food prices are expected to remain high over the next decade, spelling hardship for millions of the world's poorest, the United Nations' Food and Agriculture Organisation (FAO) and the Organisation for Economic Co-operation and Development (OECD) said in a report late last month.
Mr Nath said India had already allowed some exports to Sierra Leone and would consider other exemptions for Africa. "We will have some carve-out to African countries depending on our own current production," he said.
He did not give details but there is speculation that India may eventually export about 2.0m tonnes of rice to the least developed African countries as well as some neighbouring nations, including Bangladesh, Nepal and Bhutan.
India's economy continues to grow strongly, reaching a rate of 9.0 per cent in the last fiscal year, according to government figures released last Friday.
The new report predicted growth of 8.5 per cent this year but the rising cost of fuel has contributed to a sharp jump in inflation. In the 12 months ended May 17, it reached 8.1 per cent, a 3