Lanka to import 30,000 tonnes of Indian rice

Sri Lanka has decided to import immediately 30,000 tonne of non-basmati pooni rice from India to fight the high inflation rate which is in double digits now owing to a rise in the cost of essential commodities.

"The government will import 30,000 tonne of Indian rice that could be brought from Singapore as the export price charged by the Indian traders could touch 500 dollars a tonne," an official said here.

The Lankan government is to import the quantum of rice in two weeks to reduce the domestic prices.

According to statistics, the high wheat flour prices have brought about a decline in its consumption by about 40 per cent in the past two weeks.

As a result, the demand for rice has sharply increased, to the tune of 2,000 tonne in the recent days, sending the prices through the roof.

Meanwhile, the Sri Lankan government has ordered quick release of 19,000 tonne of rice from government stocks to sales outlets.

Earlier in the month, India has agreed to a proposal sent by the Lankan Food Ministry to raise export price of rice. Subsequently, the Director General of Foreign Trade in Inida issued the notification fixing the minimum export price at $500 per tonne FOB (Free on Board).

India decided to partially lift a ban on rice export last October by fixing the MEP at USD $425 per tonne.

New Delhi had imposed the ban on exports of non-basmati rice on October 9 to build buffer stock and improve domestic supplies.

Source: economictimes.indiatimes.com