Rice sop for poll-bound states
An Empowered Group of Ministers has selectively lifted the ban on three varieties of premium rice — Sona Masoori, Ponni Samba and Rose Matta — partly reversing a ban on rice exports effected in 2008, when the commodity hit record rates in the inte...
The logic behind handpicking the varieties whose producers will now enjoy a bonanza seems to be driven by political considerations. Ponni Samba and Rose Matta are flagship varieties produced in Tamil Nadu and Kerala, respectively. Both states are scheduled to have assembly elections in a few months. Sona Masoori, the third variety, is grown mainly in Andhra Pradesh and Karnataka , states where Congress is engaged in pitched political battles against rebel Jagan Mohan Reddy in Andhra and against BJP and its embattled Chief Minister BS Yeddyuruppa in Karnataka.
The sanction to export is subject to a cap of 1.5 lakh tonnes and a minimum export price of $850 per tonne. The ban on the export of Basmati, India’s best-known variety of premium rice, was lifted in 2009. Since then, producers of premium varieties have been clamouring for lifting the export ban, with little success. When you are lobbying for commercial gains, it seems, nothing can help you more than upcoming assembly elections in your state.
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