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Internet Edition. April 2, 2008, Updated: Bangladesh Time 12:00 AM |
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India imposes total ban on rice export: Decision taken in an emergency cabinet meeting
The rush of people is growing everyday to buy rice at fair price from OMS shops. This picture was taken from Mirpur in the city onTuesday. NN photo Agency, NewDelhi The Indian government has banned the export of non-basmati rice to try and control soaring domestic food costs. The Basmati rice is no mass food item. The decision, one of a series of measures to curb inflation, was taken during an emergency cabinet meeting. The price for exports of aromatic basmati rice has also been raised to $1,200 per tonne to discourage exports. The move could have an impact on rice prices globally as the country is the third largest exporter of the grain - a staple food in many countries. The move is the latest in a series of increases in the export price of non-basmati rice. The price of such rice was increased from $650 to $1,000 per tonne in the month of March alone. The government imposed a total ban on non-basmati rice exports last October but lifted it following protests from exporters. India is the second-largest rice producer in the world. It usually exports more than four million tonnes of rice a year. The government also announced that it would be scrapping import duty on all crude edible oils as part of its inflation-curbing measures. India ended its reliance on food imports in the 1970s, largely to the government's so-called Green Revolution. But two years ago, it imported wheat for the first time in six years following a significant drop in its stockpiles. The government wants to avoid a similar situation for its rice stocks. In mid-March, in an attempt to bolster its stocks, India abolished import duties on rice. The problem is an international one, as global rice stocks have reached a 25-year low.
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