Centre permits FCI to export 30 lakh tonnes of rice

By Gargi Parsai

NEW DELHI, MAY 2. The Centre today permitted the Food Corporation of India (FCI) to offer for export 30 lakh tonnes of rice during the current financial year. Of this, 20 lakh tonnes has been carried forward from the last financial year. This was decided at a meeting of the Union Cabinet here today.

The Government also approved the amendment to the Warehousing Corporations Act, 1962 which allows for the Central Warehousing Corporation to build godowns outside India and to enter into joint ventures, establish subsidiaries and alliances. The amendment also allows State Governments to appoint the Chairperson of the State Warehousing Corporation without prior permission of the CWC.

The Cabinet decided that the export price for rice would be set by a high-level inter-ministerial committee which would take into consideration the prevailing international prices. The price, however, will not be less than the central issue price of rice for the Below Poverty Line (BPL) population which is Rs. 3.50 a kg.

The exports would be carried out by trading agencies such as the State Trading Corporation, the Minerals and Metals Trading Corporation and other private agencies through tenders.

The FCI has in its godowns 232.24 lakh tonnes of rice of which 118 lakh tonnes is buffer stock leaving a surplus of 114.24 lakh tonnes. The decision to export 30 lakh tonnes of rice will help the Government to offload stocks and create storage space for ongoing rabi harvest.

Of the 20 lakh tonnes authorised for export in the last financial year, about 72,000 tonnes was contracted. Of this, 40,000 tonnes have already been exported. The open tender rate set last year was about Rs. 6.75 a kg. But it will be revised, sources said.

The decision to export rice will be reviewed in August this year after assessing the monsoon, the current stock and domestic requirements for the next year.

The Cabinet also approved a proposal to amend the Food Corporations Act, 1964 to enable the FCI to borrow funds proportionate to their stock holding.

The FCI for the purpose of carrying out its functions takes advances from Government approved sources subject to the condition that its borrowings shall not at any time exceed 10 times the paid up capital and reserved funds.

Send this article to Friends by E-Mail

Section  : Front Page
Previous : What Ivanov will seek from India
Next     : Special status for Uttaranchal