NEW DELHI, May 22: The Agricultural and Processed Food Products Export Development Authority (Apeda) has planned an export of 2 million tonnes of non-basmati worth $555.56 million and one million tonnes of basmati rice in 1997-98.

The total foreign exchange earning from the projected rice export estimates works out to over $ 812.23 million.

Agricultural and Processed Food Products Exports Development Authority document stated that the export of 4.5 million tonnes of non-basmati rice in 1995-96 cannot be taken as a bench mark.

It was an achievement in an exceptional situation.

In order to boost export of quality based non-basmati rice, the authority has also decided to recommend to the government to put non-basmati rice exporters on registration-cum-allocation certificate scheme.

About 90 per cent of India's total rice exports are to five countries, namely, Saudi Arabia, the UK, UAE, Kuwait and the US. Out of this, Saudi Arabia accounts for 57 per cent of export, the UK 10.6 per cent, UAE 8.8 per cent, Kuwait 8.4 per cent and the US 4.7 per cent.

Middle East continues to be the main market for exports, though in the last two years, there has been encouraging exports to Western Europe.

Apeda is confident that the India could be a permanent player in global export market for rice as it ranks second in the world in rice production with an annual output of 117 million tonnes of paddy and 80 million tonnes of rice.

Since the market, problems and related trade issues are exclusive to each basmati and non-basmati rice, the export strategy for these two categories also has to be exclusive.

Apeda, in this context has called for removal of levy on rice procured for exports. Government should also arrange for necessary credit for procurement of paddy.

Various agencies should be geared up to provide essential commercial intelligence like varieties in cultivation and likely output.

Backward integration should be established between exporters and farmers by encouraging contract farming.

According to Apeda the areas of production for particular variety should be demarcated.

Only seeds of such varieties which conform to accepted definition of basmati should be allowed to be marketed as basmati seeds in the country.

If, necessary, a propagation and seed implementation programme should be launched for providing certified seeds of approved varieties to farmers.Government should have a consistent policy of allowing at least two million tonnes of non-basmati rice every year for export and there should be no room for speculation.

To upgrade the standards of milled rice, Apeda and the union ministry of food processing should provide sufficient financial assistance for setting up of modern rice mills and modernisation of the existing ones.

Quality assurance systems in the milling process should also be established.Government should take up aggressive generic marketing campaigns in the leading markets where India enjoys substantial market share.

Apeda has decided to develop and notify standards for varieties of rice for exports.

As part of the confidence building exercise, Apeda has suggested that high level delegations should be sent to Philippines, Indonesia and Bangladesh where quality related complaints were reported in 1995-96.

Focus of export endeavors should be on select group of countries like Iran, Indonesia, Brazil and few African countries which on an average import about one million tonnes of rice every year added Apeda sources.

According to Apeda continuous and planned efforts should be made within 5 years so that Indian rice create a niche for itself in these markets.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.