Union agriculture minister Sharad Pawar and commerce minister Kamal Nath have locked horns over a week-old decision of the government to ban export of non-basmati rice varieties as a domestic measure to control price.

Under pressure from exporters’ lobbies which have been hit by the ban, the commerce minister is understood to be planning to move the Cabinet Committee on Economic Affairs (CCEA) to get the ban lifted.

The CCEA, at its meeting on October 9, had decided to ban export of non-basmati rice varieties at Pawar’s behest.

Nath’s ministry is learnt to be in the process of preparing a  note on lifting the ban for consideration by the CCEA. The commerce minister is in favour of lifting the ban on at lest some premium rice varieties, informed sources said.
Pawar’s ministry is not keeping quiet. It is opposing any change in the ban order on the ground that domestic market price had considerably eased in just one week of the ban – reduction in price ranging  between Rs 100 and Rs 200 per quintal.

No justification?

But the commerce ministry has contended that since the Food Corporation of India was not procuring premium variety rice like Ponni, Sona Mahsuri and Red Rice from south India, there was no justification to ban these varieties.

The ministry also holds that the ban would hit India export market which has been expanding by gaining foothold in East Asian and West Asian regions. Moreover, the ministry officials caution that competitors like Pakistan might capitalise on Indian ban.

Curiously, the commerce ministry is also pointing to complaints apparently made by non-resident Keralites in West Asia about the sudden non-availability of red rice following ban.

Pointing out difficulties in distinguishing basmati and other varieties, which in turn is leading to problems in implementing the ban, the commerce ministry has instead advocated fixing a minimum export price (MEP) below which the government could consider banning varieties of rice. 

Exporters contend that premium non-basmati rice varieties do not affect the local price and domestic availability, and should be allowed for exports.

They say if exports would help farmers get better price, it should be allowed.

Pawar’s ministry is, however, open to the idea of including more rice varieties in the basmati category.