Friday, 12 March 2010

India allows some rice exports to Nepal, Sri Lanka

India has allowed exports of 20,000 tonnes of non-basmati rice to Sri Lanka and 25,000 tonnes to Nepal, the government said in a statement on Wednesday, partly lifting the ban on shipment of regular grades.

Exports would be allowed through two state-run companies, said the Directorate General of Foreign Trade, an arm of the commerce ministry, in an order.

PEC Ltd has been allowed to export rice to Sri Lanka, while MMTC Ltd will ship it to Nepal.

India, the second biggest producer of rice in the world, banned non-basmati rice exports in 2008 to ensure smooth domestic supplies.

The decision to allow a limited quantity of the non-basmati rice reflects the federal government's confidence of a healthy rice stocks, despite a high level of food inflation.

India's food price index rose 17.58 percent in the 12 months to Feb. 13, the government said last week. The rise was lower than an annual rise of 17.97 percent in the previous week.

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