Rice export ban by India not to affect Lanka

Sri Lanka, which imported 70,000 tons of rice from India during 2007, is likely to remain unaffected by a ban on exports of non-basmati rice imposed by New Delhi.

This is due to the domestic crop that will hit the Sri Lankan market from this month end, according to traders.

"We are hopeful for being in a comfortable position on rice as the new domestic crop will start arriving from the end of this month and therefore, restrictions by India at this moment will not cause any problem," a spokesperson of an importers body said.

India withdrew concessions given to rice exporters, by announcing prohibition on export of non-basmati rice to strengthen supplies in the domestic market.

The country had imposed the ban on export of non-basmati rice on October 10 last year, but later eased the restrictions to allow exports undertaken against valid irrevocable commercial letters of credit.

The latest notification prohibits rice exports even against letters of credit.

Sri Lanka imported 30,000 tons of rice from India last month to fight double digit inflation due to rise in cost of essential commodities. PTI