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India joins the global rice trade

Brushing aside the political differences, India has joined the rice exporting Asian countries' block, with Pakistan as one of its member, to eliminate undercutting and secure higher price for their exports.

Other member countries of the block are China, Vietnam and Thailand, which together command 70 to 75 per cent of global rice trade.

The countries that met at Bangkok on October nine last, have decided to ''adopt a mechanism to help member countries, engaged in the rice export, to maintain their combine market share in the world trade and also to ensure stable price for the commodity.'' The member countries have formed a Council for Rice Trade Cooperation, which aims at securing better prices for the commodity by forming a cartel.

The members countries clearly underscores the point that by achieving better price for their rice export they could help the farmers get money for the produce.

They wanted to ''improve the living standard of rice farmers of these Asian countries.'' A secretary level meeting will follow this ministerial level meeting, which culminated into the formation of the Council, early next year, probably in April 2003.

Of late, India has become the second largest rice exporting country with current annual export of around four million tonnes.

Rice is a staple food in India and many other developing countries.

According to FAO forecast, the global production of rice during 2002-03 is expected to be about 397 million tonnes, the same of that of last year.

The international trade in rice is expected to be around 24.1 million tonnes, of which around 20.3 million tonnes are estimated to be imported by the developing countries, while the remaining 3.8 million tonnes is to be imported by the developed countries. Hence there is an immense potential for the rice exports to the developing countries.

In fact, traditional rice exporting countries like Thailand, Vietnam and Pakistan are feeling threatened with the fast entry of India, hitherto a deficient in foodgrains, into the global rice trade.

But Indian official circles also doubt the intentions of these countries behind forming of the Council, which is also being viewed as an attempt to checkmate India from exporting the commodity at the lower rate.

India was represented at the meet by V Sreenivasan Prasad, the Union Minister of State for Consumer Affairs and Food Distribution.

India has mounted a surplus of around 20 million tonnes, around three times more than its requirement. The fresh paddy arrival would further mount the rice stocks.

On the other hand, Indian Agriculture Minister Ajit Singh has justified the forming of rice exporting cartel on the plea that the developed and rich countries have failed to stick to the timetable of lowering subsidy to their farming sector as per the agreement of 143 nations World Trade Organisation. This has distorted the global world trade in agriculture commodities and have kept the farm produce prices low for past 10-12 years.

UNI

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