India exports non-basmati rice despite ban

The government has approved exports of close to 10 lakh tonnes of non-basmati rice in 2009-10 to neighbouring countries as well as some African nations on diplomatic grounds even as the grain export is banned. Exports of 9.52 lakh tonnes of non-basmati rice were cleared. Central public sector undertakings such as MMTC, STC and PEC were asked to negotiate the deals at market prices. "The ban is not applicable on shipments under food aid programme, diplomatic and strategic reasons and bilateral agreement through MMTC, STC and PEC," an official said. The maximum quantity — 1.44 lakh tonnes — was allowed for African nation Cote D'Ivoire, followed by 1.41 lakh tonnes to Senegal. Sri Lanka, Nepal and Mauritius were also covered under the scheme. In April 2008, export of non-basmati rice was banned to augment domestic supply and check food prices. The annual food inflation is ruling above 16 per cent. However, there is no restriction on shipments of Basmati, a premium variety of rice, subject to minimum export price of $900 a tonne. According to official estimates, rice production is pegged at 875.6 lakh tonnes in the 2009-10 season, against 991.8 lakh tonnes last year season.