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Fresh stocks make export of old rice imperative, but govt dithers

As the government continues to dither over the food ministry's proposal for export or quick disposal of three million tonnes of last season's damaged rice, fresh stocks of this year's crop have started arriving in the market creating a storage problem.

Official sources said in New Delhi that the export proposal was sent to the Prime Minister's Office for clearance way back in September this year but an answer was still awaited.

According to the proposal, rice stocks milled from the paddy procured under relaxed specifications should be exported or disposed of in the domestic market at a lower price. The damaged grain had attained a yellowish colour owing to unseasonal rains and therefore had become difficult to market.

Food ministry sources said the ministry had received export offers from at least 50 rice merchants and added that the grains might even become unfit for human consumption if there was a further delay in taking a decision.

Pointing out that the country had surplus rice stocks, much higher than the normal buffer of six million tonnes, they said rice exports would earn precious foreign exchange for the country.

The sources said the ministry received a concrete export proposal from Indonesia for purchase of low-quality rice in exchange for palmolien. As the country was currently reeling under a severe edible oil shortage, palmolein from Indonesia could go a long way in improving the situation.

The ministry also proposed a Rs 800 per quintal price for domestic disposal of the damaged rice, they said.

The stocks were lying in Punjab and Haryana.

UNI

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