The Hindu : Andhra Pradesh News : Ban on rice exports makes traders panicky

Online edition of India's National Newspaper
Thursday, Oct 11, 2007
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Andhra Pradesh

Andhra Pradesh

Ban on rice exports makes traders panicky

T. Madhusudan Rao

100 trucks stranded at weighting bridge at new port

Exporters under pressure on repayment of loans
As many as 20 export houses and 10,000 workers will have bleak future

Kakinada: The rice exporters and the shipping trade here have expressed their shock over the Central Government’s ban on export of rice other than Basmati variety. “It is like bolt from the blue. Already the exports were adversely affected due to the dollar crashing on one side and the hike in rice price besides the freight rates on the other. Many sortex plants that are totally dependent on rice exports are closed displacing many workers. The ban now will further aggravate the situation,” lamented Vinod Agarwal, one of the leading rice exporters.

He said that port was already flooded with rice stocks worth Rs. 325 crores meant for shipments to fulfil the existing contractual obligations and more stocks are in the pipe line. If the stocks were held up, he says, it would have disastrous consequences, he said.

“Already many exporters are under pressure from the bankers on the repayment of loans. The shippers are virtually panicky on the future course of action, as the rice millers who supplied rice on credit also started pestering them. Now every thing is in confusion and the Government alone responsible for this state of affairs,” said another rice exporter.

Confusion

The adverse impact and the confusion prevailing among the shipping trade could be visualised on Wednesday with 100 lorries laden with rice got stranded at one of the weighing bridges in the new port area, with the exporters reluctant to receive them. The brokers purchased the rice and moved the stock to the port area but shippers are not coming forward to accept them. “If the government did not reconsider its decision, 20 export houses and over 10,000 workers would have bleak future. More over, it is detrimental to our global interests and sends wrong signal to the US and European buyers. Above all, the very existence of anchorage port itself would be in peril,” said a leading clearing and forwarding agent expressing anguish over the state of affairs.

Added to confusion is the refusal of customs authorities to entertain any document relating to vessels scheduled to arrive for rice shipments. Of course, for the ships already anchored, there was no problem. At present 12 ships are getting loaded with rice in the anchorage and three more are expected in a day or two. “For implementation of any hard decision like this, the Government should give ample time for the exporters to fulfil their contractual obligations. At least time should be given till month end to give effect to the ban order or else many of the exporters’ lives will be miserable,” said another steamer agent who has three decades standing in the field.

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