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M.R. Subramani

CHENNAI, Oct. 8

THE Union Minister of State for Food and Consumer Affairs, Mr U.V. Krishnam Raju, is leading a delegation to the meeting of rice exporting nations convened by Thailand.

The meeting will be held in Bangkok from Wednesday with China, Vietnam and Pakistan taking part in it besides India and Thailand. The delegation comprises officials from both the Food and Commerce Ministries.

Asked by Business Line on the Government's strategy in taking part in the meet, official sources said: "We are going there with an open mind. Thailand has loosely said it will be a meeting for co-operation."

According to reports from Thailand, one of the points of discussion at the meet will be to form an organisation of rice exporting countries on the lines of the Organisation of Petroleum Exporting Countries (OPEC).

Exporter sources said Thailand had been raising the subject of co-operation among rice-exporting nations but serious discussions had never taken place. "It is difficult at the moment to discuss the outcome of the meeting," the sources said.

"It is a top heavy meeting at ministerial level and thus, discussions would be at macro-level," according to Brig Anil Adalakha, Executive Director, All-India Rice Exporters' Association.

Though the Government has an open mind in taking part in the meet, it has not consulted rice exporters on any aspect. "The Government has not sought any views from this on the meet," the sources said.

"We don't know what for the meeting has been called. We will attend it and find out if whatever is proposed is acceptable to us," official sources said.

The delegation's little preparation has also been affected by the last minute clearance given by the Government.

Exporters are, however, opposed to fixing any base price for rice exports. "Thailand is interested in fixing a floor price since it has been outpriced by India. It wants to increase its share in global rice trade. How can India help?" the sources said.

This year, the country is expected to export at least 36 lakh tonnes, displacing Vietnam as the world's No. 2 rice exporter. Currently, exports are "just about okay" though not buoyant as witnessed early this year.

"Currently, we are shipping about 3.25 lakh tonnes every month against four lakh tonnes done a couple of months ago," trading sources said.

Meanwhile, some of the importing nations led by the Philippines have strongly opposed any move to form a rice cartel.

``This is alarming. Any attempt to cartelise will be a concern, especially for countries that import rice. Prices will not only rise, but access will also be limited,'' the Philippines Agriculture Secretary, Mr Leonardo Montemayor, said in Manila on Monday.

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