INDIA`S BAN ON RICE EXPORT STAYS

NEW DELHI, Nov 27 (Bernama) -- India is not ready to lift its ban on the exports of non-basmati rice despite an anticipated bumper harvest of the grain this season.

Agriculture Minister Sharad Pawar said the ban on exports of non-basmati
rice would continue, although India's farm output was expected to increase this
time around.

"No ban on basmati rice but ban on exports of non-basmati rice will
continue because we have to protect consumers and farmers. Rice price in the
country is also high," he told Bernama on the sidelines of the Economic Editors'
Conference here Thursday.

India, the world's second largest rice exporter, after Vietnam, expects
rice production to rise from 93.35 million tonnes to 96.43 million tonnes during
the 2007/2008 period.

Good rainfall last monsoon had aided farmers to reap better harvest, with
overall food grains production to increase to an all-time record level of
230.67 million tonnes during the same period.

Indian farmers produce nearly 94 million tonnes of rice annually, out of
which about four million tonnes are exported.

The rise in domestic price is due to the combined factors like growing
demand following increasing population, change in consumption pattern, diversion
of food grains for fuel and adverse weather conditions.

The Indian government had procured a record 51 million tonnes of food
grains from the local market -- 28.4 million tonnes rice and 22.6 million
wheat -- this
year to keep prices at reasonable level.

It has also created a strategic reserve of five million tonnes of food
grains out of
the domestic procurement.
-- BERNAMA