India to Initiate Rice Trade Between Govts

March 18, 2019

The present leaders of the government are considering Government to government (G2G) trade. This trade activity is pondering on the minds frontrunners regarding food products. Presently the export of other varieties of rice (not basmati) to Philippines and Indonesia is being discussed by the trade & commerce department. The thinkers are also considering exporting sugar to Egypt because of slow growth of exports in products other than food like jewels, farm and engineering goods.

“We want to increase total exports and G2G trade is one such arrangement. This was a common way to trade a decade ago and is being revived now because many countries float tenders to procure food. We want to be part of that procurement,” an official said. According to the foreign trade policy of 2015-20, the target was to reach $900 billion from commodities and services exports by 2020. But the sluggish exports are causing the government to increase food exports.

According to the current estimates, agriculture will alone be taking the exports to $400 billion in five years. “The talks are at a preliminary stage. We are exploring if Indian non-Basmati rice can be exported to Southeast Asian countries through our state-run trading firms,” said spokesperson. The source also informed, “Though a large part of their rice imports are done through private tenders, a small proportion of government tenders are floated and we are keen to participate in those.”

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