India to export rice to Bangladesh

India has again relaxed its ban on export of food grains to facilitate supply exclusively to Bangladesh. The Indian commerce ministry partially lifted the two-year-old prohibition on overseas shipment of rice to allow export of altogether 100,000 tonnes of the grain to Bangladesh. India's decision to allow rice export to Bangladesh came just a few days after New Delhi relaxed the ban on export of wheat to facilitate supply of 400,000 tonnes. India's foreign trade DG, R S Gujral, stated that three Indian Public Sector Undertakings – Minerals and Metal Trading Corporation Limited (MMTCL), State Trading Corporation Limited (STCL) and Project, Equipment and Commodity Limited (PECL) – would export 100,000 tonnes of non-basmati rice (parboiled) to Bangladesh. While STCL will export 50000 tonnes, the MMTCL and PECL will supply 25000 tonnes each. Gujral said that export would be undertaken directly and only by the designated Public Sector Undertakings (PSUs). He also stated that (Bangladesh) would be advised to enter into contract only with the designated Indian PSUs "in terms of GATT provisions". The PSUs would buy rice from the market from all over India at a price as close to the Minimum Support Price (MSP) as possible, so as not to disturb the existing price situation in the market. The MSP for the common grade paddy has been fixed at Indian Rs 10 per kg, and at Indian Rs 10.3 for the Grade A variety for (October-September) 2009-2010. India had banned basmati rice export in April 2008, but relaxed the prohibition on a few occasions earlier to facilitate supply to neighbouring countries and also to African countries. According to the latest data, India's rice procurement was estimated to be 27.66 million tonnes for 2009-10 marketing year, down by about 0.3 per cent over the previous year. The food corporation of India expects that government rice procurement would touch the 30 million tonne mark in 2009-10.