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...

NEW DELHI: 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 international markets. The three varieties were handpicked from more than 30 premium varieties of rice, whose producers have been clamouring for a lift on the ban.

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.
Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
READ MORE
ADVERTISEMENT

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Business News › News › Politics › Rice sop for poll-bound states
Text Size:AAA
Success
This article has been saved

*

+