India suddenly imposes ban on non-Basmati rice export
Sunday, 10 February 2008
FE Report
India has suddenly imposed restriction on the export of non-basmati rice. The ban which is applicable to all countries, including Bangladesh, has made the import of 1,00,000 tonnes of rice through private sector uncertain.
The decision by the Indian government has landed the importers who have opened letters of credit (L/Cs) in trouble.
But such a ban will not hamper the import of 0.5 million tonnes of rice by Bangladesh as the arrangement is being made at the government-to-government level, secretary in charge of the ministry of food and disaster management Ayub Miah told the FE.
Bangladesh is expected to sign a deal worth nearly $200 million with India for import of 0.5 million tonnes of rice in a day or two.
Bangladesh and Indian reached a consensus on the rice price at $399 per tonne at the final session of a four-day negotiation meeting in Calcutta. The three-member Bangladesh team led by Molla Waheeduzzaman went to Kolkata February 3.
Agencies add: some 350 trucks carrying rice, ready to enter Bangladesh, were left stranded following the sudden ban order, officials said.
The customs commissioner of Kolkata Thursday announced the decision in an order to the Indian exporters. The Indian traders claimed that the customs office made the order, as it was asked by the Indian central government to do so.
Later, the Indian businessmen informed the Bangladeshi importers about the decision. But Bangladeshi and Indian officials said, they have no idea about the decision.
Expressing surprise at the export ban, an Indian rice exporter said, they would take legal course seeking permission of delivery of the consignments for which L/Cs were opened before the order, issued on February 7.
However, they would sit with the Indian officials Monday so that they could send rice to Bangladesh under letter of credit that had been opened earlier.
The ban on rice export to Bangladesh by private exporters was issued on Thursday, as the millers refused to sell 50 per cent of their products to the government. Indian government fixed the rice procurement price at Rs 11.30 per kg when the market price is more than Rs 13.
The millers at Bardwan, Gangarampur, Gazal and Mehedipara in West Bengal Monday demonstrated against the low procurement price. They sold all their products to the exporters at much higher prices. This prompted the government to ban the export, said Ganesh Prosad, secretary of importers association at Hilli land-port.
Another report from Hilli land-port in Dinajpur said, the news of the restrictions frustrated the traders at Hili.
Bangladeshi traders said, the decision to halt rice exports through the private sector could hamper official efforts to export rice to Bangladesh, which needs the staple badly after massive crop losses made by recent floods and a devastating cyclone.
India has suddenly imposed restriction on the export of non-basmati rice. The ban which is applicable to all countries, including Bangladesh, has made the import of 1,00,000 tonnes of rice through private sector uncertain.
The decision by the Indian government has landed the importers who have opened letters of credit (L/Cs) in trouble.
But such a ban will not hamper the import of 0.5 million tonnes of rice by Bangladesh as the arrangement is being made at the government-to-government level, secretary in charge of the ministry of food and disaster management Ayub Miah told the FE.
Bangladesh is expected to sign a deal worth nearly $200 million with India for import of 0.5 million tonnes of rice in a day or two.
Bangladesh and Indian reached a consensus on the rice price at $399 per tonne at the final session of a four-day negotiation meeting in Calcutta. The three-member Bangladesh team led by Molla Waheeduzzaman went to Kolkata February 3.
Agencies add: some 350 trucks carrying rice, ready to enter Bangladesh, were left stranded following the sudden ban order, officials said.
The customs commissioner of Kolkata Thursday announced the decision in an order to the Indian exporters. The Indian traders claimed that the customs office made the order, as it was asked by the Indian central government to do so.
Later, the Indian businessmen informed the Bangladeshi importers about the decision. But Bangladeshi and Indian officials said, they have no idea about the decision.
Expressing surprise at the export ban, an Indian rice exporter said, they would take legal course seeking permission of delivery of the consignments for which L/Cs were opened before the order, issued on February 7.
However, they would sit with the Indian officials Monday so that they could send rice to Bangladesh under letter of credit that had been opened earlier.
The ban on rice export to Bangladesh by private exporters was issued on Thursday, as the millers refused to sell 50 per cent of their products to the government. Indian government fixed the rice procurement price at Rs 11.30 per kg when the market price is more than Rs 13.
The millers at Bardwan, Gangarampur, Gazal and Mehedipara in West Bengal Monday demonstrated against the low procurement price. They sold all their products to the exporters at much higher prices. This prompted the government to ban the export, said Ganesh Prosad, secretary of importers association at Hilli land-port.
Another report from Hilli land-port in Dinajpur said, the news of the restrictions frustrated the traders at Hili.
Bangladeshi traders said, the decision to halt rice exports through the private sector could hamper official efforts to export rice to Bangladesh, which needs the staple badly after massive crop losses made by recent floods and a devastating cyclone.