The South India Rice Exporters Association has sought relaxation in the norms for export of premium non-basmati rice exports.
It has called for augmenting the quantities permitted and also easing port and packaging restrictions.
A two-member delegation from the association comprising its President, Mr Naresh Kumar Goel, and Secretary, Mr P. Vishnukmar, met the Director-General of Foreign Trade (DGFT), Mr Anup Kumar Pujari, and the Joint Secretary in the Department of Commerce, Mr Siddharth, on Tuesday and pleaded for increasing the quantity of premium non-basmati rice exports by at least another one lakh tonnes of sona masuri rice through the Chennai port.
The current policy permits exports of 50,000 tonnes each through Chennai and Vizag ports and ponni rice and matta rice each up to 25,000 tonnes each from Tuticorin and Kochi port respectively.
However, already 50,000 tonnes of Sona masuri rice have been exported from Chennai port, while from Vizag port only 10,000 tonnes could be exported due to high logistical cost and poor road access to the port.
The case for Ponni and Matta from the two designated ports is similar, the Association said adding that the authorities should allow export of an additional one lakh tonnes of sona masuri rice from Chennai port.
Also, it said the transfer of unutilised quantity of sona masuri rice from Vizag port to Chennai port would help the exporting community to effect shipments till a policy decision is taken on the additional quantum of export.
Stating that before the curbs on export, premium non-basmati rice were exported in 20 kg and 25 kg packages to Far East and West Asian markets with 5 kg, 10 kg and 20 kg packages to the US, European and Australian market, the Association said currently the policy restricts exports to package size of 10 kg and less.
Due to the packing restrictions, the overall export cost goes up by $50-$60 a tonne, making South Indian non-basmati premium varieties unremunerative compared with varieties such as Thai Jasmine which is sold in 20 kg and 25 kg. Hence, the Association has sought an increase in the packing size to 20 kg and 25 kg.
Further, the Association pointed out that since most exports of non-basmati rice from the South took place only through Chennai port, the Government's port restrictions made exports costly.
The Association said that due to better connectivity, good Container Freight Stations, higher vessel frequency, cheaper ocean freight, most of the exports of premium non-basmati rice varieties are routed through Chennai port.
Since the current port restrictions prevented importers from getting all the three varieties of non-basmati premium varieties through a single consignment, the association called for a review of the policy.