Tuesday, 10 November 2009

India may buy rice from Vietnam, Thailand

The government may import about 2 million tonnes of rice, including government-to-government deals with Thailand and Vietnam, the

Press Trust of India reported on Wednesday, citing unamed official sources.

The government may also give incentives for such imports to be spread over one year, said the report, which was published in Business Standard newspaper.

A ministerial panel, headed by Finance Minister Pranab Mukherjee, would make a decision on various proposals for rice imports on November 12, it said.

The worst monsoon in 37 years has shrunk the summer-sown rice output, raising prospects of higher food prices and further dependence on imports for the main food crop.

To help cover a fall of about 15 million tonnes in the summer-sown rice crop, the federal government last month allowed tax-free imports. As well, three state-owned firms have been asked to import 30,000 tonnes of rice by mid-December.

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