India to retain curbs on farm exports

A top official says India is expected to retain export curbs on rice and wheat for at least three months.

Rice from India on sale at a shop in central Abu Dhabi.

NEW DELHI // India may extend the ban on futures trading in soyoil, rubber, chickpea and potato when it expires next month, and is expected to retain export curbs on rice and wheat for at least three months, a top official said. India has banned several farm futures and restricted food exports, hoping the moves would help contain inflation, which has risen to a 13-year high of nearly 12 per cent. "Prices of commodities remain a concern. It is unlikely that we will relax the ban on futures trade in four commodities," the commerce secretary GK Pillai told reporters today.

On May 8, India suspended futures trading in soyoil, rubber, chickpea and potato for four months, and had earlier banned contracts of wheat, rice and two varieties of pulses. The government has also banned exports of wheat and non-basmati rice to ensure steady supplies in the domestic market. "Until the new crop comes, whatever restrictions are there will stay in place," Mr Pillai told reporters. In May, the farm minister Sharad Pawar said the ban on non-basmati rice exports would continue until November, when the government would know the output from the summer-sown paddy crop.

*Reuters