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Rice export ban - nothing but a political gimmick!
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Bikky Khosla | 20 May, 2008
Today India, the world's second-biggest rice producer after China, has a selective ban on export of rice - strange but true!
The government justifies this ban as a step to tame runaway inflation. However, with the general elections scheduled to be held by May 2009, the move, I feel, is more of a political gimmick than an economic decision.
Commerce Secretary G.K. Pillai was himself quoted by the media as saying, "...this being an election year we will be cautious with exports". This speaks volume about the lack of concern that the authorities have for exporters.
After this ban was clamped, the authorities are seen doing damage control and now there are signs of easing the ban if not doing away with it completely. Amidst this uncertainty however, the worst affected are the rice exporters. Several rice importers have threatened lawsuits against Indian exporters for default on commitments...and that's not all! They have started negotiating with Pakistan and Thailand for their requirements.
What the Indian thinktank does not seem to understand is the fact that such bans might contain price pressures in the short term, but they could hurt future growth and will only contribute to the government's large debt burden.
And the government's justification of the ban too, has very less takers. They say 'the ban would have affected the profits of exporters in the wake of the steep rise in rice prices globally, but otherwise, the people in the country would have to pay global prices for these essential items. This is the trade-off and the government has opted for shielding the domestic consumers from spiralling prices of food-grains'.
The government didn't have the foresight to realize that because of this selective ban, exporters are losing their earnings, and most importantly, their credibility in the global markets.
But why would they care...it's election time and logic holds no good when it comes to making decisions. As of now, I guess we have to live with this...sad but true!
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export ban
kay jay impex | Tue Jun 3 04:54:14 2008
First we should ban directly/indirectly all the agriproducts which consume too much water. Also we should discourage ban of raw cotton to china who then challange us in cotton apparels. Iron ore, and all other raw minerals should also be banned and only ready items made of it should be encouraged.
Staple food
TVR | Sat May 24 19:24:02 2008
I feel that you as a CEO of trade india, is only biased in your opinion about the rupee.Would it not be nice that 300million of Indians just brush over the poverty line, in line with 'China'. Yes, exporters contribute to the GDP of the country. But don't you think that we as Indians should make an effort to elliviate the downtrodden. Trade as always mentioned, by the Smith and other theories, do apply; but is it revelent to the nature of Our Country, which is the largest Democracy ( not even the US) where fedral laws, need not be state laws. and by the way the European Union, is just an extention of the United states where they have a common currency. Needless to say, I would think more on what and where INDIA INC has to put their money. I would had prefered, that India had invested more in the oil companies( almost all govt owned)in R&D in finding an alternative solution when oil was at $25 a barrel, rather than no. Not forgetting oil at $136 a barrel and with the reverses depleting, It is high time people at trade india and Govt of India start thinking in terms of OIL which is a major revenue drainer. The pollution( Global Warming) as conducted by KPMG in 2005 said that, by 2030 India will be the second largest carbon emitter after China. Are we really looking into this. What is a rupee or a dollar? It is only money i.e. in Zimbawe where inflation has crossed one lakh percentage, and we worried that the inflation of approx 7.5%. Can we feed us?????
Rice export ban - nothing but a political gimmick!
Vinod Kumar | Sat May 24 04:08:53 2008
Whether the production of rice in India is sufficient to cater to the requirement of the country?
The export should be allowed only if the production is in excess of the requirement and the inventory that we can maintain.
If we are unable to fulfil our internal demand then how can we go for exports?
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Re: Rice export ban - nothing but a political gimmick!
K.K.SHARMA | Mon May 26 07:21:21 2008
I centpercent agree with the author
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Rice export ban - nothing but a political gimmick!
Faisal Shaikh | Thu May 22 12:32:31 2008
Pakistan is facing alot of issues with availability and prices of rice where as Our exports in last year were really higher than history. Both countries are comming up with an idea to open trade of rice on govt. level and if same situation India faces then it will be a big issue. Plus to control any kind of border crossing for Rice this action would have been taken. I believe that profit of trade is not important if country man should die hungry or could not reach prices of eatables.
Regards,
www.bokharacarpets.com
RICE EXPORT
Kuldeep Walujkar | Wed May 21 07:40:12 2008
This is a great concern for all rice exporteres in india but as mentioned in the note above how do you justify domestic consumers paying global prices hike. If anybody could put some light on it.
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Re: RICE EXPORT
Faisal Shaikh | Thu May 22 12:36:14 2008
I believe it will be opposite, prices will come down becuase supply in the country will be increased, the comodity which should have been exported will be sold out in market. There is one thing to be kept in mind that rice become expensive when they get older but i think there is a limit of that otherwise they become rottoned. Regards, www.bokharacarpets.com
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BANNING RICE EXPORTS
RAJESH SHARMA | Wed May 21 04:28:27 2008
Emotions defines logic and our POLITICAL AND Top babus are very sentimental, they have realised that we should not allow foreign people to eat our resources its a different thing they pay for it, but our thinktanks or policy makers can take a decision at the drop of hat without careing for left or right. They are not concerned that millions of dollars are going out of the kitty, and thousands of jobs would be at stake but who cares for EXPORTS and all these things after all we are DEMOCRACTIC NATION and progressive too and from agrarian economy to Finished prodcts Exports is our slogan, so there is no logic in harping over a decision irrespective of its rationality taken by babus on behalf of politicians.
JAI HIND JAI HIND
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Re: BANNING RICE EXPORTS
Faisal Shaikh | Thu May 22 12:39:36 2008
Dear JAI HIND, do not worry, we are sitting out of India and can tell you better that situation Pakistan is facing this step taken by Indian Govt. is in the best interest of your econmy believe me your exports will come back at their normal routine soon, or may be will increase to the level which you have never even thought of.. Regards, www.bokharacarpets.com
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