India may import rice from Thailand, Vietnam

RELATED NEWS Govt to import rice to bolster buffer stock

Traditional rice exporter India is looking at importing rice from Thailand and Vietnam through diplomatic deals, Trade Minister Anand Sharma said on Tuesday.

This would be the first time in 20 years that India imports the grain.

The federal government might also consider banning cotton exports to improve domestic market supplies, Sharma said.

Three state-run trading firms last month floated rice import tenders totalling 30,000 tonne and received 18 bids ranging from USD 373 to USD 599 per tonne.

Of the three, MMTC said prices quoted in the bids were too high.

"Various possibilities are there. We are also exploring the option of government-to-government deals," Sharma said, adding his government might buy rice from Thailand and Vietnam.

He said a panel of ministers would meet on November 20 to decide on the bids received for the rice import tenders of State Trading Corp of India (STC), MMTC and PEC.

Government officials on Monday said bids submitted for supplying rice to PEC would be valid until November 23. But the validity of bids received by STC and MMTC expired on Tuesday, officials, who did not wish to be named, told Reuters.

Traders with global trading firms, which participated in the tenders, said they did not receive any communication either from MMTC or STC.

Sharma said the country had sufficient stocks of rice and imports were aimed at shoring up supplies.

Although India has ample grain stocks, this year's poor monsoon has raised doubts about the output of summer-sown crops.

The government on November 3 said summer-planted rice output could record a bigger-than-expected fall of 18% to 69.45 million tonne compared with the previous year.

On October 1, rice stocks at government warehouses were 84% higher year-on-year at 14.5 million tonne, while wheat stocks were 23% more at 27 million tonne.

Sharma said wheat stocks are in surplus and there would be no need to import the grain.

Some private Indian firms have sealed deals to import 10,000 tonne of wheat, for the first time in two years.

Cotton exports

Following requests from textile firms, the government might consider banning exports of cotton, Sharma said.

"There has been a request to ban cotton exports.We are in discussions with all the stakeholders. Textile minister has also put in a word. We may consider it," he said.

Cotton output in India, the world's second-biggest producer, is expected at 30.5 million bales (1 bale=170 kg) in the year ending September 2010 as against 29 million bales in 2008/09.