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Commodity News
Sep 5 2008 7:24PM
UPDATE 1-India allows immediate exports of premium rice grade

(Adds details)

NEW DELHI, Sept 5 (Reuters) - India on Friday allowed immediate exports of a premium grade of rice, the government said, a day after it decided to allow overseas sales of the variety only from Oct. 15.

Summer-sown paddy normally starts coming to the market in mid-October but traders said the decision would allow them to quickly start working on export deals for the the long-grained, aromatic Pusa-1121 grade.

It will also allow exports of the premium grade for some part of the crop that is harvested early, the government statement said.

The move is expected to release up to 1 million tonnes of premium rice in the year to Sept. 2009 for exports and ease supply concerns. But sales from Thailand are expected to fall once India steps up supply. See [ID:nDEL39875].

Apart from the Pusa-1121 variety, India only allows basmati rice to be exported and the shipment of regular grades is banned. The ban is expected to be reviewed in November. (Reporting by Himangshu Watts; Editing by Mark Williams) (([email protected] +91 11 4178 1017 Reuters Messaging: [email protected])) Keywords: INDIA RICE/

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