Date:15/10/2007 URL: http://www.thehindu.com/2007/10/15/stories/2007101574320600.htm

Tamil Nadu

Chamber’s plea to Centre on ban

MADURAI: Tamil Nadu Chamber of Commerce and Industry has urged the Union Government to modify the blanket ban on export of all non-basmati rice.

Cabinet Committee on Economic Affairs chaired by Prime Minister Manmohan Singh met this week and took the decision in view of the increasing domestic requirement.

In a statement issued here on Saturday, chamber president S. Rethinavelu said the ban should have been restricted to varieties that were supplied through Public Distribution System.

Extension of the ban to finer varieties of rice such as ‘Jeera Samba’ and ‘Ponni,’ which have limited internal demand, would affect the exports, he said.

“The export ban will create unnecessary glut in the internal market for these finer rice varieties besides diminishing our foreign exchange earnings,” said Mr. Rethinavelu.

The ban would also have an adverse impart on farmers.

Export ban on wheat flour would not cause any significant impact on local prices as only about 5,000 tonnes were exported annually, he said.