New Delhi: Against the backdrop of rising
global prices, the government on Friday decided against rice
import stating it has enough stocks to manage demand despite a
shortfall of 15 million tonne in Kharif production.
"We are not importing (rice). We have adequate stocks. We
will review if there is any need (in future)," Commerce and
Industry Minister Anand Sharma told reporters here after a
meeting of the empowered group of ministers (EGoM) on food.
The EGoM, headed by Finance Minister Pranab Mukherjee,
decided to scrap the three tenders, totalling 30,000 tonne,
floated by the state-owned trading firms - MMTC, STC and PEC.
"The government does not want to buy at such high
prices," a source said adding the option of imports through
government channels of exporting countries remains open.
The three government firms had received bids earlier this
month with a price range of USD 372-598 per tonne. The landed
price of these bids at the ports works out to be Rs 18-28 per
kg against the average domestic price of Rs 22-25.
The sources said that global prices are impacted after
India entered the market.
The EGoM decision against rice import, though an
about-turn from the earlier government announcement, is being
viewed in the trade circles as a strategy to cool the
spiralling international price. They said, the government may
again enter the market at appropriate time.
Earlier this week, both Mukherjee and Sharma had spoke
about the government move to import rice in view of production
shortfall and rising food prices.
PTI
First Published: Friday, November 20, 2009, 21:14