Government partially lifts ban on export of non-basmati rice, onions

The government has allowed export of certain varieties of non-basmati rice grown in the southern states, partially-lifting a three-year ban, even as it allowed free export of onions in cut, sliced and broken in powder form.

Onions in whole form, whether dehydrated or not, would, however, be subject to prohibition imposed in December 2010, in the wake of the onion crisis and the subsequent price spike, the Directorate General of Foreign Trade (DGFT) said in a notification on Friday.

The December 2010 notification had prohibited export of all varieties of onion, including Bangalore rose onions and Krishnapuram onions - fresh or chilled, frozen, provisionally prepared or dried but excluding onions cut, sliced or broken in powder form.

The government has permitted exports of 'Ponni Samba' and 'Matta' varieties of rice, subject to a cap of 25,000 tonnes each. It has also permitted shipments of the `Sona Masuri' rice variety up to a limit of 1,00,000 tonnes, DGFT said its notification.

These varieties are grown in Tamil Nadu, Kerala, Andhra Pradesh and Karnataka.
 
"Certain varieties of rice (Sona Masuri, Ponni Samba and Matta) are permitted  to be exported with a limit on quantity of export for the KMS (kharif marketing season), 2010-11," the DGFT said in its notification.
 
The government, however, has set a minimum export price realisation for rice of over $850 per tonne.
 
The agriculture ministry has estimated rice production in the country to rise to 94 million tonnes in the 2010-11 crop year, from 89 million tonnes in the previous year.

The empowered group of ministers headed by finance minister Pranab Mukherjee took the decision at the request of agriculture minister Sharad Pawar.