Export curbs may be eased

NEW DELHI: The United Progressive Alliance government at the Centre will review a ban on wheat exports and curbs on overseas sales of basmati rice, but shipments of other grades of rice will not be allowed at least until November, food and agriculture minister Sharad Pawar said on Thursday. The minister said that smooth domestic supply was a priority for the government, which has curbed exports of wheat and rice, banned futures trading in some commodities and cut import duties to improve stocks and relieve price pressures. India last exported wheat in FY04 and became an importer in the past two years, but a bumper crop has helped the government purchases from local farmers rise well above the record 20.6 million tonnes bought in 2000. Mr Pawar said that a government panel, called the empowered group of ministers (EGoM), would soon consider lifting the ban on wheat exports. “We will think. There is an EGoM. We will discuss it in the EGoM,” he said. Mr Pawar said India had about 5.8 million tonnes of wheat on April 1 against a target of 4 million tonnes and the record procurement had helped stocks swell so much that the government had enough supplies to run welfare schemes for 21 months. But controls on non-basmati rice exports would stay at least until November, when summer-sown paddy would be harvested as the government would take no chances with domestic supply, he said. Cambodia has lifted a two-month ban on rice exports, becoming the first Asian nation to relax recently imposed restrictions. The United Nations’ Food and Agriculture Organisation raised on Thursday its rice output forecast for 2008 by 1 million tonnes to 667 million tonnes on the back of improved outlook from Cambodia, but said food prices would remain high for a decade. Mr Pawar said he favoured easing basmati rice exports as the premium grade of grain was either exported or consumed by the rich, not used for subsidised supply to the poor. “If farmers want to earn a little bit of money, basmati is the crop where they can earn some money. Not a single grain of basmati comes to my kitty for the public distribution system,” he said. Rice exporters say government’s changing policies and a tax on basmati exports had reduced overseas sales to a trickle. Mr Pawar said rival suppliers may push out India from the international basmati market if exports did not pick up and that would hurt Indian farmers, who would find it difficult to regain their market share. He said the government was keen, but not in a hurry, to help neighbouring countries, which have asked India to supply rice. “For the time being, no. We are eager to help. I have got requests from many neighbouring countries. Procurement will take at least three months to get completed and then we will access the situation,” he said. Rice prices have eased from record highs set in late April on signs that global supplies will improve and expectations that Vietnam will follow Cambodia’s lead in freeing rice exports. To achieve long term food security, Mr Pawar said farmers must be paid well to help raise output and consumers would have to share the burden. “The consumer of this country should not expect to get all agriculture produce at a subsidised rate ... at the cost of farmers,” he said.