State to approach Centre for encouraging rice exports

By Our Special Correspondent

VIJAYAWADA, OCT. 25. The Telugu Desam Government will prevail on the Centre to encourage rice exports by providing subsidy and discourage imports by increasing duty in a bid to reduce rice stocks piled up with the Food Corporation of India and help the latter keep its procurement target so that farmers will get the minimum support price in the current season.

Addressing a press conference here today, Mr. Vadde Sobhanadreswara Rao, Agriculture Minister, allayed fears of farmers that the rice price may fall further leading to a crisis in the market. He said steps would be taken to see that the FCI kept its commitment of procuring 55 lakh tonnes of rice from Andhra Pradesh. He said action would be taken against those rice millers who failed to pay the minimum support price to farmers for their paddy.

He admitted that the FCI had been burdened with the huge stocks of 145 lakh tonnes of rice and 227 lakh tonnes of wheat making it difficult to keep normal procurement for want of godown space. He exhorted the Central Government to find ways to dispose of the stocks to prevent a crisis in the rice market. While rice was available at Rs. 1250 a quintal in the international market, Indian rice cost Rs. 1125, excluding transport and handling costs, making it highly uncompetitive. So, he wanted the Centre to provide subsidy on rice exports to get rid of the stocks. Also, he wanted import duty on rice raised from 80 per cent to discourage imports from countries like Thailand. The duty can be increased up to 300 per cent, he pointed out.

Mr. Sobhanadreswara Rao came down heavily on the FCI for supplying Punjab rice to Kerala, Karnataka and Tamil Nadu incurring heavy expenditure on transport eventhough the latter preferred Andhra rice. He said the Andhra Pradesh Government had requested the FCI to supply rice at Rs. 9.50 a kg for distribution among people living above the poverty line (APL). He said that the FCI had favourably responded to the demand of Telangana farmers to relax moisture specifications for procurement of maize.

He did not agree that the Akali Dal with two members of Parliament had been able to coerce the Centre to relax specifications for procurement of rice, but not the TDP despite its large contingent of MPs. He said that Punjab and Haryana lying close to Delhi had always been wielding greater influence on the Centre over the years irrespective of the party in power. "We are doing what we can do," he said.

He felt the need for compelling developed countries too to reduce their subsidies on foodgrains. He pointed out that the United States of America had been providing subsidy of 133 billion dollars (Rs. 65,000 crores) on foodgrains under different names like blue box. But developing countries were forced to reduce their subsidies under GATT. He said that the Central Government would take up the issue at the appropriate forum.

Mr. Sobhanadreswara Rao said that paddy crop had been damaged in Bihar, West Bengal and Bangladesh due to floods. Andhra rice can be exported to these deficit areas. He wanted the Rice Millers Association to send a delegation to Bangladesh to explore possibilities of export.

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