KUALA LUMPUR – India has confirmed its decision to allow export of white rice to Malaysia on a “special quota” basis after it had banned overseas shipments of non-basmati white rice and imposed a 20% tax on parboiled rice cargoes to protect its domestic supply earlier this year.
The world’s biggest rice exporter said it had agreed on this matter following a request from Malaysia and in view of the rapt and friendly relationship between the two nations.
A notification has been issued to the Directorate-General of Foreign Trade in New Delhi for the special quota of 170,000 metric tonnes for Malaysia.
A source at the High Commission of India in Kuala Lumpur said that India's External Affairs Minister Subrahmanyam Jaishankar conveyed news on the decision to Malaysian Foreign Minister Datuk Seri Zambry Abdul Kadir in a telephone conversation yesterday.
"Pursuant to the request received from the Government of Malaysia for allocation of special quota of white rice by India on government-to-government basis, and in view of the Enhanced Strategic Partnership between India and Malaysia and strong bilateral ties in food and agricultural sector between the two countries, the government of India has approved export of 170,000 metric tonnes (MTs) of Non-Basmati White Rice to Malaysia on October 18, 2023 as mark of special friendly gesture
"The decision of the Government of India to allow special allocation of white rice to Malaysia was conveyed by H.E. Dr. S Jaishankar, Honourable External Affairs Minister of India over a telephone call with H.E. Datuk Seri Dr. Zambry Abdul Kadir, Hon’ble Minister of Foreign Affairs of Malaysia on October 18, 2023,” said the source in a text message.
Zambry expressed his appreciation to the the Indian government for extending support to the Malaysian people in view of the current supply situation.
“Necessary notification towards export of the special quota of non white Basmati rice of 170,000 metric tonnes for Malaysia has been issued by the Directorate-General of Foreign Trade, Government of India, on October 18, 2023.
“The decision by the government of India is reflective of the close ties between India and Malaysia and in line with India’s continued policy of supporting efforts of governments in the friendly countries towards safeguarding domestic food security,” the source added.
Agriculture and Food Security Minister Datuk Seri Mohamad Sabu had said on October 2 that Prime Minister Datuk Seri Anwar Ibrahim had contacted his Indian counterpart Narendra Modi on Malaysia's request and expressed confidence in close government-to-government (G2G) contacts.
Mohamad had also said that he had met representatives of the Indian government to discuss India’s export restrictions on white rice and the procurement of rice from that country at a reasonable price on a G2G basis.
It was reported yesterday that seven countries were granted exemption to import white rice from India despite its current ban.
Besides Malaysia, the others are the Philippines, Nepal, Cameroon, Seychelles, Ivory Coast, and the Republic of Guinea.
In August, India had allowed some rice exports to Bhutan, Mauritius, and Singapore.
Putrajaya has acknowledged the shortage of rice and the increase in the price of imported rice. Anwar has reasoned that this is due to the decision of 18 countries to prevent or limit the export of rice.
Mohamad had earlier this month announced new intervention measures to overcome the rice supply issue in the country.
These included directing the Federal Agricultural Marketing Authority (Fama) to increase the distribution of local white rice in rural areas, including sundry shops, with the government bearing the transportation cost for Fama.
For Sabah and Sarawak, the government agreed to give a subsidy of RM950 per tonne for imported white rice beginning October 5, enabling imported white rice to be obtained at a retail price of RM31 per 10km.
On September 28, Mohamad was reported to have said that he would propose for government premises to use subsidised imported rice as a measure to increase the supply of local rice in the market. – The Vibes, October 19, 2023
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