As the buyer becomes the seller, India, the largest exporter of rice in the world, has a new competitor in the global market. From the key policy makers in Udyog Bhawan to the top millers exporting rice, everyone is cautiously watching China, which offloading tonnes of rice in African markets usually secured by India.

 

"We are aware that China, hitherto a buyer (of rice), is increasing its export of white rice at a very competitive price. But let's see how the situation develops in terms of overall volume of exports," said an official in the Export Division(Agriculture) of the Union Ministry of Commerce and Industry.

 

In the past six months, China has released over 3 million tonnes of white rice from government-owned warehouses. A bulk of these consignments were reportedly shipped to African countries.

 

"We (India) export non-basmati rice for $400 per tonne approximately...but China is offering rice at considerably lower prices," said Lakshya Agarwal, a prominent rice exporter of Uttrakhand. As per market sources, China is exporting non-basmati rice at rates ranging from $300 to $320 per tonne. 

 

"The difference between Indian and Chinese rates are quite significant. In the long run, it can have an impact on our exports," Agarwal added.

 

For decades, India has been world's largest exporter of rice followed by Thailand, Vietnam and Pakistan. While India continues to secure the top berth, its exports of non-basmati rice are shrinking rapidly. For example, in 2019 (April to November), India exported non-basmati rice worth Rs 9,028.34 crore against Rs 14,059.51 crore in the same period of the previous year. 

 

The Commerce Ministry data reveals that non-basmati exports have fallen to 35.78 percent in early eight months of the current financial year, compared to the corresponding period a year ago.

 

Sources in the Agricultural & Processed Food Products Export Development Authority (APEDA) said that China has meticulously planned offloading its old stock of rice in the African market.

 

"Actually Chinese eat sticky rice which has a rich taste when it is fresh. The flavour is not the same in the old stock of rice.. that's why there is always a demand for fresh rice in China. The moment the fresh rice floods the market, the government releases its old stock at very low rates," the source said

 

"The old stock of rice is being exported in African countries." 

 

The Chinese strategy has ultimately disrupted the global market of rice exports wherein India feels the pinch, being the largest exporter. 

 

Meanwhile, a senior official of Ministry of Commerce and Industry said that to tackle the Chinese competition globally, a lobby of rice exporters had suggested that the government should release excess stock of non-basmati rice from the warehouses of the Food Corporation of India into the open market. 

 

However, the government seems unwilling to release the stock, as it has to run the Public Distribution Scheme (PDS) for the poor. 

 

To this, an executive of Delhi-based top rice export company said: "If the government cannot afford to release its stock from FCI warehouses, than it can at least grant some export incentive to non-basmati exporters in wake of face stiff competition from China and other global players."

 

Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

With the near impossibility of the government completing privatisation of Air India, Bharat Petroleum Corp (BPCL) and Container Corporation of India (Concor) by the end of FY20, it is staring at Rs 60,000 crore budget gap despite planning to line up 'offers for sale' (OFS) to garner at least Rs 40,000 crore divestment proceeds.

 

While there may not be lack of interest for BPCL or Concor; disinvestment of Air India, due to Rs 60,000 crore debt, doesn't look so promising even the next year.

 

Earlier in the day, a DIPAM official said in Mumbai the stake sale of Air India, BPCL and Concor might be difficult in FY20.

 

The Shipping Corporation stake sale may go through, but it is likely to fetch just Rs 1,800-2,000 crore. 

 

The government has garnered only Rs 18,022 crore from selloffs, which is way behind the Rs 1.05 lakh crore target.

 

To make up for the Air India, BPCL and Concor disinvestment before March 31, sources said the Finance Ministry was weighing OFS for few profit-making public sector firms to at least achieve 50 per cent of the disinvestment target.

 

Though not finalised, these could include National Aluminium, Coal India, NTPC, NMDC, and NBCC (India), the official said. Bharat Electronics, National Fertilizers and Hindustan Copper were also on the list. The government's shareholding in these companies is in the 52-82 per cent range.

 

Timeline is set to play a major role. The Disinvestment Department may issue EoIs (Expressions of Interest) by end of January for Air India and by mid-February for BPCL. But the due diligence may take four-five weeks for responding to EoIs. The prospective bidders could seek more time for due diligence since it involved huge assets and funds, sources said.

 

In case of BPCL and Concor, another set of rules too could come in the play. "If it triggers an open offer for minority shareholders as per Sebi (Securities and Exchange Board of India) guidelines in the listed companies, like BPCL and Concor, the process will get delayed by another five-six weeks. After that the successful winner will have to get clearance from the Competition Commission of India. Only after that it will transfer the money to the government account," said a source.

 

While the government plans to sell entire 100 per cent stake in Air India, it will divest its total 53.29 per cent stake in BPCL and 30.8 per cent stake in Concor of the 54.8 per cent stake.

 

Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

There is considerable turmoil and controversy surrounding the Citizen Amendment Act (CAA).

 

Over twenty lives have been lost so far and, in many places, there are stories of pitched battles between police and protestors. I am trying to look at this dispassionately.

 

The CAA makes a provision for religious minorities from Pakistan, Bangladesh and Afghanistan to acquire Indian citizenship if they have entered India before 31 December 2014. The government’s stated reason is that these minorities suffer persecution in these Islamic countries and India is the natural home for them. The opponents of this law have pointed out that this law clearly discriminates against Muslims, since it is the only community left out,- and will be used to target Muslims in India. They contend that this amendment goes against the secular nature of India’s constitution and must be scrapped and questions why religious minorities from Myanmar and Sri Lanka have been left out. The government argues that India cannot offer to become the country for refuge to everyone in the world, and that India is the natural home for these minorities. 

 

Neither side is revealing the real reasons. Perhaps the principal reason for the government bringing in this law was to ensure that the lakhs of Hindus likely to be disenfranchised by the Assam national register of citizens (NRC) should be protected. This conflicts with the local Assamese desire to retain their cultural identity. Perhaps the earlier Central governments and the Assam state governments may have realized the complex problem and hence did not show much enthusiasm to finish the process as per the accord. On the other hand those opposing CAA are probably worried about the impact this will have on the NRC when it is implemented. The government argues that they have not decided on NRC so far.

 

To many citizens in the country the amendment promises the minorities of three neighboring countries the chance to lead a life of dignity and cannot understand what motivates the opposition. It feels this arises out of a visceral distrust of the Prime Minister and the government in power. What is the real issue?

 

The elephant in the room is the government’s stated objective of a National Register of Citizens. This was part of the manifesto of the ruling party and was mentioned by the President in his address to Parliament. The government’s intention to implement the NRC has been mentioned by the home minister numerous times. Presently the government has been claiming that no NRC has been finalised, and that it would not take away the citizenship of any Indian Hindu or Muslim. However, it has not spelt out how the NRC would be implemented and how citizenship would be established. 

 

It is well recognized that most people’s claim to citizenship arises from having been born in the country. Additionally,- at times,- it is the birthplace of their parents and grandparents. This has to be established by documentation. That is the real snag. It is likely that a significant percentage of India’s population will not be able to give any birth certificates, either because they did not obtain one or have lost it (I do not have my birth certificate). 

 

Aadhaar or ration card cannot be the basis for accepting citizenship claims. Some people have said election cards, passports or permanent account number (PAN) cards could be the accepted as valid documents. 

 

How will migrant labour be able to establish their citizenship? What about orphans, women whose names and surnames may have been changed at marriage? There are innumerable questions and doubts which need to be addressed. 

 

If the present CAA had not been enacted the difficulty would have been so universal and widespread that either the government would have given up the exercise or would have had to dilute the requirements to such an extent that it would have become a farce. 

 

It is no secret that there is widespread harassment and corruption even in issuing ration cards. If this is an issue of citizenship, which has to be established to avoid being hauled into a detention camp, the level of corruption is likely to be very high and the trauma and insecurity felt by the poor will make demonetisation look like a luxury holiday.

 

With CAA in place the norms for establishing citizenship could be stringent for those who may not be able to show documents. It could be argued that even if non-Muslims were not born in India, they would only have to show that they were in India before December 2014, and hence could not be denied Indian citizenship.

 

That would leave only the Muslims having to fulfil the near impossible task of proving they are Indian citizens. This would expose them to great harassment, humiliation and corruption. 

 

Many Indian citizens may be sent to detention camps and an uncertain future. It would leave a deep scar on the nation. This is the main fear. The government not spelling out how it will carry out NRC without subjecting to trauma the poor Indian citizens, creates great distrust.

 

This can be changed if the government transparently explains how the NRC will be implemented and lays down all the requirements and processes before the nation. Alternately it should assure the nation that it will not impose NRC in the next decade. The government must regain the trust of all Indians.

 

(Shailesh Gandhi is Former Central Information Commissioner and can be reached at [email protected])