Commerce Ministry to prepare specific plan on rice export to Africa

NEW DELHI : Worried over declining exports of agriculture products, particularly rice, to Africa, Commerce Ministry is considering to formulate a specific action plan to boost shipments of basmati and non-basmati rice to the continent.

In a recent meeting, Commerce Secretary Rajeev Kher has asked Agricultural and Processed Food Products Export Development Authority ( APEDA) "... to look into formulating a specific export plan on export of rice to African countries," a senior official of the Ministry said.

The official added that a ministerial delegation may also visit some African countries and hold meetings with potential rice importers to "push rice export to Africa".

"There is a higher demand anticipated from African countries for rice and India can tap that potential," the official added.

Exports of several agriculture products, including rice, tea, coffee, cereals, oilmeals, fruits and vegetables, registered negative growth in February.

In all, seven out of 13 main agriculture products that are closely monitored by the Commerce Ministry, were in the negative zone.

Rice exports in February dipped by 12.36 per cent to USD 649 million as compared to USD 740 million in the same month last year.

Export of basmati rice during the April-December period contracted by 6.19 per cent to 2.57 million tonnes (MT) from 2.74 MT in the same period last year.

For India, major export destinations for basmati rice are Iran, Saudi Arabia, Iraq, Kuwait and the UAE.

However, major export destinations for non-basmati rice include Benin, Bangladesh, Senegal, South Africa and Liberia.

Decline in these exports is a key factor for a slow growth in India's overall merchandise exports.

During April-February, the country's total merchandise exports grew by only 0.88 per cent to USD 286.58 billion.

Agri-products account for over 10 per cent of the country's total exports.

The government is struggling to improve exports number and it is hovering at around USD 300 billion for the last three financial years.

In 2013-14, the shipments fell short of the USD 325 billion target but managed to touch USD 312.35 billion.

The country's exports stood at USD 300.4 billion in 2012-13 and USD 307 billion in 2011-12, respectively.

In the current fiscal also, the shipments are expected to reach USD 320 billion as against the target of USD 340 billion.

As per estimates, outbound shipments of agri-produce in 2010-11 amounted USD 17.35 billion; USD 27.43 billion in 2011-12; USD 31.86 billion in 2012-13 and about USD 45 billion in 2013-14.

Source : economictimes.indiatimes.com