Home News India allows rice exports beyond two million tones

India allows rice exports beyond two million tones

by Business News Report

India has allowed overseas sale of common rice beyond two million tonnes, officials said on Tuesday, removing a previous cap announced by Food Minister K. V. Thomas in September 2011. “Our stocks are comfortable on a bumper harvest. So, we can continue with exports of rice and wheat,” Thomas said on Tuesday. Ministry officials confirmed this removed the limit of two million tonnes.
The official order issued in September after ministers had agreed to allow two million tonnes each of common rice and wheat exports did not specify any restrictions on overseas sales. Exports of Indian common rice, which is cheaper than that of Vietnam and benchmark Thai prices, have been brisk and by the first week of January, private traders had shipped 1.96 million tonnes.
India is exporting rice to South Africa, Nigeria, East Africa and the Middle East and neighbouring Bangladesh. “This move will encourage more overseas sales of rice,” said Vijay Setia, president of the All India Rice Exporters’ Association. He added that the industry would like to see more consistency in policy over grains exports. September’s decision on exports came after a four-year ban.

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