The Hindu : Andhra Pradesh News : Ships in the dock, still

Online edition of India's National Newspaper
Wednesday, Oct 17, 2007
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Andhra Pradesh

Andhra Pradesh

Ships in the dock, still

T. Madhusudana Rao

Long wait for customs nod

Kakinada: As many as 12 ships are awaiting customs clearance for the past one week following the Centre’s decision to ban all non-basmati rice exports.

While loading of rice did not commence in four ships, the process stopped midway in the remaining vessels following instructions from customs authorities.

Several barges taking rice for shipment were confined to jetties in the main canal as on Monday night. Further loading of rice into the barges was stopped. With only rice bran extractions and maize exports being handled at the anchorage port, many steel barges and port workers were without work.

Image at stake

Things might turn worse as another 20 ships were expected to touch the port in the next few days, with a majority of them chartered for rice shipments.

The shipping trade and rice exporters were aghast over the notification No. 38 issued by the Union Ministry of Commerce on October 15 giving retrospective effect to the ban on rice exports from October 9. They wondered how could the government give retrospective effect to an order affecting the trade and the nation’s image.

“It is draconian and erratic. Such actions send wrong signals globally and lower the country’s reputation. No foreign buyer will venture to depend upon India for supply of rice because of the confusion and uncertainty created by the bureaucratic muddle. The government should reconsider the decision,” said a leading steamer agent.

“The government should give ample time to the exporters honouring the letters of credit issued by foreign buyers and allow the rice exports,” says another clearing and forwarding agent.

Advantage rivals

As a result of the ban, the shipper had to bear the demurrage for waiting that added to the losses. Already, rice exporters suffered losses on account of dollar crash. Also, the incentive extended by the government in form of DEPS (duty entitlement pass book), which was enhanced from one to three per cent to neutralise the effect, was diluted. It was now slashed to one and half per cent.

“Our rivals in the sector – Thailand, Pakistan and Vietnam – will benefit most,” lamented another exporter.

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