India starts importing rice as output concern grows real

New Delhi, Oct 29 (PTI) After successive years of bumper
production, India has started importing rice amid a projected
shortfall in output of up to 16 million tonnes due to drought
and floods, according to traders and millers.
Though the government has maintained that it would not
import rice, the purchase from overseas markets by private
traders is going to intensify in the coming days as the
customs duty of 70 per cent has been abolished, they added.
"About four lakh tonnes of rice has already been imported
by traders and the figure is going to go up," said a leading
exporter, who did not wish to be named.
Federation of All India Rice Millers Association General
Secretary Sushil Kumar Choudhury said some traders in southern
India have contracted to import rice in huge quantities from
countries like Thailand.
Rice prices in the domestic market have already gone up
by about 25 per cent in the last four months on supply
concerns.
Earlier this week, commenting on the scrapping of customs
duty on rice, Agriculture Secretary T Nanda Kumar had said the
government would not import but it had created an opportunity
for private traders to do so.
However, advising caution, leading basmati rice exporter
Kohinoor Foods Joint Managing Director Gurnam Arora said,
"Prices in the global market flare up when India decides to
enter the import market. So the import should be done secretly
otherwise exporters would take advantage of it."
Traders have, however, refrained from making any
projection about rice import this season, saying it's too
early to comment. Nevertheless, the abolition of the import
duty suggests renewed government efforts to boost domestic
supply.
The customs duty was scrapped after drought in about half
of India delayed sowing and pulled down paddy areas by about
six million tonnes while subsequent floods in Andhra Pradesh,
Maharashtra and Karntaka damaged the standing crop.
India had produced 99.15 million tonnes of rice in
2008-09.
Though the government has piled up huge stocks, about 47
million tonnes of rice and wheat till August-end, it would
still like to have considerable quantity in reserves to meet
any emergency in the next year, said a trader, explaining the
rationale behind the government encouraging import by removing
duty. PTI BKP