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Why Russia banned rice exports from India
Abhijit Roy, Commodity Online
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May 16, 2007 12:34 IST

The Indian government has sprung into action after Russia banned export of rice from the country following prohibited pesticides were found in the rice shipments.

Minister of State for Commerce Jairam Ramesh told the Parliament that Russian side has stated the cause as detection of demethoate, which is not admissible under Russian regulations.

The ban imposed on import of rice by Russia with effect from May 1 is violative of the Protocol signed in February this year, minister pointed out.

He also said that government is taking up the matter with the Russian authorities.

India will contest the ban because Russia's government had agreed to hold off the restriction until November.

India exported 24,955.54 tonnes of rice worth Rs 2876.50 lakhs (Rs 287.6 million) to Russia in the year ended March 31, 2006. Exports to Russia have averaged about 50,000 tons in the past five years, 1.5 per cent of the total 3.6 million tons shipped from the country.

Earlier, Russia issued a statement announcing a suspension on import of rice from Thailand, Vietnam, Sri Lanka and USA including India due to the purported detection of pesticides.

As a result of efforts made by the Indian government to revoke the announced suspension, a delegation from the Federal Service for Veterinary and Phytosanitary Surveillance of the Russian Federation visited India during in February.

At the end of the visit, a protocol was negotiated which has now been signed by both the sides, the Minister added.




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