Thursday, November 07, 2019

7th November,2019 Daily Global Regional Local Rice E-Newsletter


Rice exporters require certification of inspection to export to European Union

PTI | Nov 6, 2019, 13:56 IST

New Delhi, Nov 6 () Indian rice exporters will now have to obtain a certification of inspection from a government agency to ship both the basmati and non-basmati varieties to countries of the European Union.
"Export of rice (basmati and non-basmati) to European Union (EU) countries will require certificate of inspection from Export Inspection Council/Export Inspection Agency with immediate effect," directorate general of foreign trade has said in a notification.
Two aromatic basmati rice varieties -- PB1 and 1401 -- witness maximum export to the EU.
The European Commission had brought down in basmati rice the maximum residue limit (MRL) level for Tricyclazole, a fungicide used by farmers against a disease, to 0.01 mg per kg from 0.03 mg earlier. This was done for all countries.
India, the world's top rice exporter, exports about 3 lakh tonnes of basmati rice to the EU.
The Export Inspection Council (EIC) is the official export certification body of India which ensures quality and safety of products exported from India.
It was set up by the government of India under the Export (Quality Control and Inspection) Act, 1963 to ensure sound development of export trade of India through quality control and inspection.
The assurance to quality and safety is provided through either a consignment wise inspection or a quality assurance/food safety management based certification through its field organisation.
The Export Inspection Agencies (EIAs) under the council are located at Mumbai, Kolkata, Kochi, Delhi and Chennai. RR ANS ANS

Unjust trade policy subverts ILO’s decent work program

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Trade is a powerful instrument to promote commerce and growth of an economy. It is a key to the creation of more and better jobs. 
However, trade policy, poorly formulated and haphazardly implemented, can cause economic havoc, perpetuate economic backwardness and even cause massive displacement in the labor market. This is why countries have been adamant in asserting their respective national interests in trade negotiations. 
Example of how trade rules perpetuate backwardness: The Philippine experience under the American colonial rule. In the 1900s, the United States enacted a US-Philippines “free trade” law and imposed this law in a one-sided manner on its colony. This arrangement was conceived to reinforce the complexion of the economy as a producer of primary agricultural/mineral products and an importer of the more expensive industrial goods. In short, the free-trade regime was used to keep the Philippines as a “hewer of wood and carrier of water” for the metropolis. The US-Philippines free-trade arrangement lasted until the 1940s. Thus, for five long decades, no significant manufacturing industry was developed in the colony.
Example of poorly formulated and haphazardly implemented trade rules: rice trade liberalization through the abolition of the regulatory functions of the National Food Authority and granting of full importation powers to the private sector. Immediately after the passage of the law, over 2 million tons of imported rice entered the market, precipitating a palay price crisis for 2.4 million Filipino palay farmers. No transition and adjustment programs were crafted for the domestic palay producers, millers and small traders. No protection measures instituted against the predatory behavior of the big rice importers-distributors. The defanged NFA could not even inspect rice warehouses because it no longer has powers to monitor and inspect rice imports. And worse, the Philippines surpassed in importation and trade liberality the big rice-producing countries, which import 5 percent to 10 percent of their national requirements, such as China, India, Indonesia and South Korea. These countries have maintained their respective State-controlled grains trading agencies whose task is to stabilize prices for producers and consumers alike, have set higher tariff rates and have remained steadfast in sustaining the modernization of their rice industry. 
Examples of countries asserting national interests in trade talks: many. The most recent is the withdrawal of India from the Regional Comprehensive Economic Partnership agreement that was finalized in Thailand in the just-concluded Asean Summit. India said it is not prepared to expose its domestic industrial and agricultural producers to competition with their Chinese counterparts under the RCEP discipline. And then there is President Donald J. Trump, who has launched a trade war with China and who has caused the withdrawal of the United States from the American-sponsored Trans-Pacific Partnership. Trump’s blunt explanation: America First.
There has also been a global backlash against the global free-trade rules being pushed by the developed countries through World Trade Organization, and various regional and bilateral free-trade talks. In the WTO, the battle cry of the powerful countries is “equal rules” for all. Member countries should open up their industrial, agricultural and services markets, and should not discriminate against any trade partner under the so-called principle of most-favored nation treatment. 
But equal rules for the heavyweight and lightweight players naturally have predictable unequal outcomes. This is the reason why developing countries have been asking: where are the rules based on the principle of “special and differential treatment,” a principle which gives a developing country space and flexibility in trade (e.g., tariff adjustments and exemptions for certain products) so that it can meet its development priorities in line with its existing level of development. 
In the case of the contentious issue of agriculture, the United States and the European Union have been pressing developing countries to liberalize markets and remove government assistance to the small farmers. And yet, the United States and the EU have not budged on the demand of the latter to remove the huge price support subsidies that the United States (under the US Farm Law) and the EU (under the Common Agricultural Policy) have been giving their farmers, as much as $65 billion a year for the EU farmers. This is one reason why the WTO has failed to conclude its so-called Development Round, a trade negotiation round that started in 2000. 
The backlash against the unjust “equality” trade rules in the global market also applies to the neo-liberal “Washington Consensus” free-trade thinking, which became the “in” thing among the economic policy-makers after the collapse of the USSR. The International Monetary Fund and the World Bank, which observe their 75th anniversary this year, played a leading role in convincing the world, especially the debtor countries, that the path to growth and development lies on the adoption of the Washington Consensus dogma. Debtor countries were asked to embrace a program called “structural adjustment program” or SAP, a comprehensive program which entailed not only the wholesale or “unilateral” liberalization of a country’s market but also the adoption of debt-oriented austerity programs. 
And yet, the SAP outcomes in Latin America and other developing countries were extremely bad. In the case of the Philippines, studies of the Fair Trade Alliance, Focus on the Global South and the Federation of Philippine Industry show that SAP was instrumental in putting the economy on a slow-motion process, and, in stunting manufacturing, desolating agriculture and squeezing the populace through a series of belt-tightening measures such as the adoption (and gradual upgrading) of the value-added tax system. The SAP decades of the 1980s-1990s-2000s were lost decades for the Philippines. The Philippines, a middle-income country in the 1970s, got stuck in a low level of development and was bypassed by its Asean/Asian neighbors in the SAP decades. But thanks to the economic saviors—the overseas Filipino workers and the ICT-enabled workers in the call center/BPO sector, the country is now hailed as Asia’s next dragon.
So what is the impact of the global backlash against neoliberal globalization? The WTO Ministerial in Seattle in 1999 was shut down by the protest action of trade unions, farmers’ organizations and Church activists coming from developed and developing countries. The WTO Secretariat tried to mollify those opposed to WTO’s one-size-fits-all trade liberalization by promising a “development round.” As to the World Bank, it came up with new versions of SAPs such as “SAP with institutional reforms” (e.g., campaign against corruption) and lately, the WB has been promoting programs on social protection such as conditional cash transfer for those who have not benefited from SAP.
In the International Labor Organization, there were also intense debates on how to tame runaway globalization that rides roughshod on workers’ rights, as multinationals take advantage of “borderless” global markets to drive wages down and prevent unionism everywhere. Thus, in 1998, the ILO Secretariat in Geneva made extra efforts to push for the “reaffirmation” of “international core labor rights” through the adoption by the International Labor Conference of the landmark “Fundamental Principles and Rights at Work” recognizing the workers’ basic rights: freedom of association, collective bargaining, nondiscrimination, prohibition against forced labor and elimination of extreme forms of child labor. Subsequently, the ILO Secretariat, under DG Juan Somavia, organized its various international development programs under the theme “Decent Work,” defined as work obtained in conditions of freedom, dignity, equality and security. ILO was back as the conscience of the UN family.
It is against the foregoing background that one can appreciate the linkage between trade policy and the ILO’s decent work advocacy. Bad and unjust trade policy leads to unemployment, poverty and backwardness. A number of industrial relations scholars also trace widespread labor precarity such as the “Endo” phenomenon to the neoliberal SAP trade policy regime.
Now, recently, the ILO Manila Office came up with a book report, The impact of trade on employment in the Philippines: Country report. The book tried to summarize three theoretical economic approaches in understanding the country’s economic performance: neoclassical, political economy and new structural economics. The problems of “jobless growth,” weak industry performance and agricultural decline were also cited. 
However, the book is strangely hesitant in pinning the lack of decent jobs in the Philippines on SAP and neoliberal trade policy. It is also silent on whether the Philippine trade policy regime needs an overhaul given the country’s sad performance under SAP. Without such an overhaul, can decent jobs, as envisioned by ILO, blossom?

Rice, oil and wheat top on Kenya’s import bill


07 November 2019 - 04:00


Kenya Trade Network Agency (KenTrade) shows rice was the most spent on commodity in the year under review, where traders imported beans valued at a total Sh218.7 billion.

In Summary
•Beans imports however had the highest rise from Sh490.6 million in 2017-18 to Sh10.8 billion.
•Expenditure on imports is however reported to have dropped by Sh27.85 billion year-on-year to Sh871 billion in the first half of the year.
The vessel with 29,900 tonnes of maize from Mexico when it was received at the port of Mombasa on Friday, May 12, 2017. /FILE
Food commodities, real estate and construction related products were the highest imported in the financial year 2018-19, latest data shows, as traders continue to embrace automated cargo clearance systems.
Latest data from the Kenya Trade Network Agency (KenTrade) shows rice was the most spent on commodity in the year under review, where traders brought in 1.6 billion kilogrammes valued at Sh218.7 billion.
This was a 23 per cent increase on volumes compared to 2017-18 when 1.3 billion kilogrammes valued at Sh119.7 billion was imported, mainly from Pakistan, Vietnam, Thailand and India.
The second most spent on commodities were palm and crude oil where a total of Sh113.8 billion went into their importation, a 13 per cent increase from Sh100.9 billion spent the previous year.
This was followed by wheat and meslin which cost importers a total Sh90.3 billion up from Sh65.4 billion. Total volumes however dropped by 70 per cent to 1.7 billion kilogrammes compared to 5.9 kilos the previous year as traders gave more focus on local production.
Cement clinker, a key component in cement manufacturing was the fourth most spent on commodity as import volumes grew 23 per cent to 2.5 billion kilogrammes.
Importers spent a total Sh13.7 billion on this raw material compared to Sh12.3 billion the previous year.
Coal importers on the other hand spent Sh11.4 billion on imports making the fifth most cleared commodity under KenTrade systems.
This was however a drop compared to Sh17.1 billion spent the previous year as volumes imported dropped 24 per cent to 768.2 million kilogrammes, compared to 1.01 billion kilos imported in 2017-18, when shisha sales were still high in the country.
KenTrade has noted increased activities on its systems. The state agency under the National Treasury is implementing the National Electronic Single Window System (Kenya TradeNet System), as it pushed for enhanced cross border trade.
KenTrade CEO Amos Wangora yesterday noted the World Bank Group-IFC survey shows that the implementation of the system has resulted in streamlined import and export processes and procedures (including payment of fees), transparency in the processes and effective information sharing.
“The data on international trade in Kenya is a pointer to the scope of the efficiency that has resulted with the automation of the import and export processes,” Wangora said.
The Single Window System is basically a trade facilitation tool that enables parties involved in international trade to submit regulatory import and export related documentation to lodge their documents through a single platform, hence the name Single Window System.
The agency’s data shows beans, maize (corn) sodium hydroxide (caustic soda), printed financial papers (bank notes, stamps), printed matter (pictures) and iron or steel were other common imports cleared under its systems.
During the year, imports on printed financial papers were valued at Sh2.3 billion a drop from Sh2.7 billion the previous year.
Beans imports had the highest rise from Sh490.6 million to Sh10.8 billion worth of the produce imported last year as local production went down on unfavourable weather conditions.
Expenditure on imports is however reported to have dropped by Sh27.85 billion year-on-year to Sh 871 billion in the first half of the year, according to the Kenya National Bureau of Statistics (KNBS), as trade deficit reduced to Sh567.89 billion.
The drop has been recorded mainly in imported clothes and furniture among other goods.

https://www.the-star.co.ke/business/kenya/2019-11-07-rice-oil-and-wheat-top-on-kenyas-import-bill/

 

Bangladesh Rice Production and Area Rises During MY 2019/20

Bangladesh Rice Production and Area Rises During MY 2019/20
November 7, 2019 8:05 IST | capital market
As per the latest update from United States Department of Agriculture (USDA), Bangladesh rice production area and output have been marginally increased to 11.8 million hectares (HA) and 35.8 million metric tons (MMT), respectively. The increase is due to a reportedly strong year for Aus rice (April-August) production and a forecasted good season for Aman rice (July-December). Harvested Aus rice area is revised up to 1.1 million HA and production up to 2.45 MMT, based on official data from the Government of Bangladesh (GOB). Harvest of Aman rice will start in November. The planted Aman rice area is revised at 5.8 million HA and production forecast is raised to 14 MMT as official sources and other contacts believe that continued favorable weather will result in an above average Aman rice harvest.
The MY 2019/20 rice import forecast is lowered to 50,000 MT, which is 50 percent lower than MY 2018/19 imports. The forecasted decrease in imports is the result of the increased import tariff to on rice, from 28 percent to 55 percent.
According to the Ministry of Food, on October 16, 2019, government rice stocks were 1.33 MMT, compared to 1.1 MMT at the same time last year.
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Border closure as last battle against economic saboteurs



The Central Bank of Nigeria (CBN) counts gains of land border closure to businesses and economy. The closure of land borders is part of Federal Government’s plans to revive local industries and tackle smuggling of rice and other commodities, writes COLLINS NWEZE.
Nigeria’s economy is estimated at $450 billion based on World Bank statistics.  The economy could have been larger but for the porosity of its land borders.
For years, goods, especially rice, from neighboring countries come in and out of Nigeria without trace. The practice has led to not only revenue loss and the closure of local industries, but aggravated Nigeria’s security challenges. The biggest contraband route was between Cotonou, Benin’s biggest city, and Lagos.
But all that changed in August 21, when the Federal Government closed all Nigerian land borders to check smuggling and breath life into local industries, especially rice milling and farming, the worst hit segments of the economy.
Nigeria’s immediate neighbours Benin, Niger, Chad and Cameroon – as well as Ghana and Togo have been hit by the border closure. The exercise brought the bustling borders to a standstill, with goods rotting and queues of lorries waiting at checkpoints in the hope they would be reopened soon. The delay in opening the border has brought some relief to Nigerian businesses.
For instance, the Nigerian rice industry, which for years was almost non-existent as over 80 per cent of rice consumed locally was imported, is gradually regaining its lost glory.
The recovery seed was planted in 2015 when the Federal Government and Central Bank of Nigeria (CBN) launched rice farming in Kebbi State. That singular exercise triggered upsurge in the number of people across the country going into rice farming.
The country also witnessed more people setting up integrated mills across the country with funding and other support from the CBN but the threat of smuggling crippled these businesses. Whatever efforts were made were dwarfed by smugglers and economic saboteurs who brought contraband products into the country.
The smugglers took advantage of the country’s porous land borders to bring in substandard rice and other products until the land borders were closed.
Aside the closure of the land borders, CBN Governor Godwin Emefiele disclosed that the apex bank had blocked accounts of identified smugglers, as well as commenced investigations to ascertain their culpability in what he described as economic sabotage.
Emefiele, who made the disclosure at a consultative roundtable tagged: “Going For Growth” in Lagos, said smugglers and dumpers have been the major saboteurs of the economy.
The move may have kicked off the apex bank’s efforts to make good its threat of going after smugglers, particularly of 43 items that can be produced locally, which it slammed “Not Valid for Foreign Exchange.
He said: “In due course, we would come out with the names of companies that have been identified, as we want to be sure and come out with credible facts that are not deniable.
“We have already blocked accounts of some in the textile, rice and palm oil industries. We are now investigating those accounts, and as information becomes clearer and we see that they committed the offence, we would go to the next round, which is forbidding all banks from banking with them.”We have decided to deal with them, but in our own way. We would use the instrumentality of being the regulator and head of banking system to get the details of these smugglers, investigate their accounts and if culpable, we would not only block the accounts, but close them, including those of their promoters.”
Border closure not new
Nigeria banned the importation of rice from Benin in 2004 and from all its neighbors in 2016, but that has not stopped the trade. Nigeria is only allowing in foreign rice through its ports – where since 2013 it has imposed a tax of 70 per cent. The move is intended not only to raise revenue but also to encourage the local production of rice.
But smugglers have been taking advantage of the fact that it is cheaper to import rice to Nigeria’s neighbors. In 2014, Benin lowered its tariffs on rice imports from 35 per cent  to seven per cent while Cameroon erased it completely from 10 per cent.
The economic relationship between Benin and Nigeria , both members of the Economic Community of West African States (ECOWAS), is unequal, with Nigeria exerting much more influence on Benin.
Given Nigeria’s over 200 million population, economy, and natural resource wealth, Benin has adopted a strategy centered on serving as a trading hub, importing goods and re-exporting them legally but most often illegally (through smugglers) to Nigeria, thereby profiting from distortions in Nigeria’s economy until the ongoing border closure commenced.
CBN moves against smugglers
Emefiele said the bank accounts of all identified smugglers would be frozen soon.  He expressed satisfaction that the decision to close all land borders had not only created more jobs but also boosted rice and poultry productions in the country.
“You will all recall that we have been embarking on a programme where we are saying if you are involved in the business of smuggling or dumping of rice in the country, we close your account in the banking industry. Although that is coming very effectively,” the CBN governor said.
Continuing, he said:  “You will all recall that in November 2015, President Muhammadu Buhari, the Central Bank and some state governors went to Kebbi State to launch the Wet Season Rice Farming. Since then, we have seen an astronomical growth in the number of farmers who have been going into rice farming and our paddy production has gone up also quite exponentially.
“Between 2015 and also now, we have also seen an astronomical rise in the number of companies, corporate and individuals that are setting up mills, integrated mills and even small mills in the various areas. And the central bank and the federal ministry of agriculture and rural development have been the centre of not just only encouraging the production of rice in Nigeria but also funding these farmers by given them loans to buy seedlings, fertilizers or some of the herbicides that they need for their rice production”.
Border closure gains by CBN
Emefiele disclosed that before the border closure, Rice Processors Association disclosed that all the rice millers and processors were carrying in their warehouses over 25,000 metric tons of milled rice, which were unsold due to smuggling and dumping of rice through Republic of Benin and other border posts.
Continuing, he said: “We also have members of the Poultry Association of Nigeria who also complained that they have thousands of crates of eggs that they could not sell together with even some of the processed chickens that they could not sell also arising from problem of smuggling and dumping of poultry products into Nigeria.”
“A week after the borders were closed, the same rice millers association called to tell us that all the rice that they had in their warehouses have all been sold. Indeed, a lot of people have been depositing money in their accounts and they have even been telling them ‘please hold on don’t even pay money yet until we finished processing your rice.’
“The Poultry Associations have also come to say that they have sold all their eggs, they have sold all their processed chickens and that demand is rising. So, when you asked, what is the benefit, the benefit of the border closure on the economy of Nigeria, I just used two products – poultry and rice.
Emefiele added that the benefit is that it has helped to create jobs for our people, it has helped to bring our integrated rice milling that we have in the country back into business again and they are making money. Our rural communities are bubbling because there are activities because rice farmers are able to sell their paddy.
“The poultry business is also doing well, and also maize farmers who produce maize from which feeds are produced are also doing business. These are the benefits. “We are not saying that the borders should be closed in perpetuity, but that before the borders be reopened, there must be concrete engagements with countries that are involved in using their ports and countries as landing ports for bringing in goods that are smuggling into Nigeria.’
Also speaking, an entrepreneur, Emeka Eneanya, has commended the Federal Government and the Nigeria Customs Service  (NCS) for the decision to partially close the land borders as a way of checking insecurity and massive smuggling activities especially of rice taking place along the border routes.
He said that border closure will promote economic growth.
Speaking to traders during a visit to Onitsha Main Market, Anambra State, Eneanya , said the initiative by the NCS  has demonstrated  government’s desire to protect agricultural  sector and tother investments which  have been adversely affected by smuggling.
Ghana plans rice import ban too
Like Nigeria, the Republic of Ghana has put plans in place to ban the importation of rice and poultry in three years’ time.
This information was made public by the Minister of Agriculture for the West African nation, Owusu Afriyie-Akoto.
According to him,  Ghana wants to divert its attention into boosting local production and shun heavy reliance on rice and poultry importation, hence the three years’ timeline.
It was pointed out that 82 per cent of the bulk of Ghana’s imports is for rice alone.
This accounts for over $1 billion, a calculation that translates into almost two per cent of Ghana’s Gross Domestic Product (GDP), according to Ghana Deputy Trades Minister, Robert Ahomka Lindsay.
Ghana Agric Minister wants to combat this importation struggle through a flagship programme known as Planting for Food and Jobs in order to boost local capacity to meet high demand as well as simulate trade between merchants and local farmers.
Afriyie-Akoto said the Planting for Foods and Jobs initiative could be operational in three years and enough to combat rice and poultry importation during that same period. He was confident his ideas would work because the law backs his decisions and he noted that the initiative did not violate World Trade Organisation (WTO) rules neither was it overambitious.
Ghana’s Foreign Minister Shirley Ayorkor Botchwey said the country’s traders had incurred huge losses because their goods had been detained for weeks at the Nigeria-Benin border. She advised the Nigerian government to “find ways of isolating the issues and the countries that it has problems with, so that Ghana’s exports can enter Nigeria’s market without being lumped up with all these issues that have emerged”.
But Nigeria’s Minister of Finance, Mrs. Zainab Ahmed said the decision to close Nigeria’s land borders was not meant to be vindictive. She said that since Nigeria was committed  to the African Continental Free Trade Agreement (AfCFTA), there was need to ensure that rules are obeyed otherwise local industries will be greatly affected. “Businesses have been suffering due to the activities of smugglers but with the more opening up following our commitment to the AfCFTA, this will get worse unless we make sure now that everybody comes back to obey the rules as agreed,” she said.
The minister said: “ The border closure was not permanent adding that there are lots of discussions going on at the technical level and at some point, it will be at the level of Presidents and then real commitments will be made and hopefully, everybody will comply to own side of the agreement”.

Moist paddy leaves farmers high and dry

Nov 7, 2019, 6:59 AM; last updated: Nov 7, 2019, 6:59 AM (IST)
Distress sale, tardy procurement add to their woes
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Kulwinder Sandhu
Tribune News Service
Moga, November 6
Paddy farmers in the state are caught between quality standards for procurement set by the Food Corporation of India (FCI) and state procurement agencies. Hundreds of tonnes of foodgrain are lying in grain markets across the state, while more than 15 per cent is yet to be harvested owing to change in climatic conditions resulting into high-moisture content in grains.
The procurement agencies are unwilling to purchase paddy beyond the level of 17 per cent moisture content in grains. The farmers complained that the moisture content had increased due to the sudden dip in mercury and lack of proper sunlight, which had been reduced by prevailing smog in the region.
“Nobody looks at why farmers are facing the hardships? We are suffering a decline in the paddy yield by about 15 quintals per hectare, facing hardships in purchase of the food grains by procurement agencies, distress sale in the hands private purchasers (rice millers), the ire of the state government over burning of paddy stubble and above all delay in sowing of wheat and other crops,” said Ranjit Singh, a farmer of Moga.
After talking to a cross-section of the farmers, it came to light that farmers were facing a lot of hardships during the current paddy procurement season.
At the ground level, there have been reports of distress sales made in the course of this ongoing procurement season by farmers to private dealers, particularly rice millers. Such sales are rarely registered with the mandi authorities.
In Moga, private dealers/rice millers are duping farmers on the pretext of high moisture content by paying lesser rates below the MSP announced by the Union Government. They are also evading market fee and rural development fund.
An arhtiya in Baghapurana town of the district purchased more than 35,000 bags of paddy without paying the market fee and RDF and transferred these foodgrains to his rice mill located on the Lande-Bhaloor road. On a tip-off, a team of Pungrain raided the rice mill and found the unaccounted stock of paddy. The rice mill was sealed for the time being and internal investigations were in progress by the procurement agency. However, no criminal case has been registered against the tax evaders.
The sudden dip in mercury by the third quarter of October increased the moisture content in grains. The FCI and state procurement agencies insisted on the strict enforcement of quality control regulations. By the end of October, the stocks of paddy were building up and the reports of distress sales began to come in from many parts of the state.
“No one seems willing to make the decisions needed to address the real problem of farmers. In larger sense, one has to understand the basic problems of farmers and frame policies accordingly, which benefit farmers as well as the nation,” said Sukhdev Singh Kokri, general secretary, BKU (Ekta).
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India exports about 3 lakh tonnes of basmati rice to the European Union

Indian rice exporters will now have to obtain a certification of inspection from a government agency to ship both the basmati and non-basmati varieties to countries of the European Union (EU). “Export of rice (basmati and non-basmati) to European Union (EU) countries will require certificate of inspection from Export Inspection Council/Export Inspection Agency with immediate effect,” directorate general of foreign trade has said in a notification. Two aromatic basmati rice varieties -- PB1 and 1401 -- witness maximum export to the EU. The European Commission had brought down in basmati rice the maximum residue limit (MRL) level for Tricyclazole, a fungicide used by farmers against a disease, to 0.01 mg per kg from 0.03 mg earlier. This was done for all countries. India, the world’s top rice exporter, exports about 3 lakh tonnes of basmati rice to the EU. The Export Inspection Council (EIC) is the official export certification body of India which ensures quality and safety of products exported from India. It was set up by the government of India under the Export (Quality Control and Inspection) Act, 1963 to ensure sound development of export trade of India through quality control and inspection. The assurance to quality and safety is provided through either a consignment wise inspection or a quality assurance/food safety management based certification through its field organisation. The Export Inspection Agencies (EIAs) under the council are located at Mumbai, Kolkata, Kochi, Delhi and Chennai

Bihar Govt: Officials accepted ‘inadequate’ securities from millers

The Bihar government had, last week, informed the SC that as per the agreement between state and rice millers, the latter were to furnish bank guarantees or pledge unencumbered immovable properties in lieu of paddy procurement.

By
, ET Bureau|
Nov 07, 2019, 07.52 AM IST
0Comments
BCCL
Admonishing the Nitish Kumar government for trying to save its own officials instead of taking action against them, the Supreme Court has asked the state to “put its house in order and proceed accordingly”.
NEW DELHI: The investigation into the Rs 1,500-crore paddy scam has taken a curious turn with the Bihar government conceding that its own officials colluded with mill owners by accepting “incomplete and inadequate” securities furnished in lieu of the paddy procured from the state.

Admonishing the
Nitish Kumar government for trying to save its own officials instead of taking action against them, the Supreme Court has asked the state to “put its house in order and proceed accordingly”. It has also sought the details of 300 FIRs registered by the Bihar police to issue notices to the accused.

Faulty guarantees
The Bihar government had, last week, informed the SC that as per the agreement between state and
rice millers, the latter were to furnish bank guarantees or pledge unencumbered immovable properties in lieu of paddy procurement. “The deed of pledge so furnished by millers were in gross violation of clause 3 of the agreement which provided that the immovable property subject matter of pledge must be in the name of the millers. However, it has been found that in most cases, the property mentioned in the deed of pledge was not in the name of the millers but in the name of some other person,” the Bihar government has stated in its affidavit. “Therefore, such a deed of pledge cannot be used to secure the interest of the corporation in view of the fact that in case of default, such property which is not in the name of millers cannot be put to auction,” it added.

The state has told the SC that in most cases the “deed of pledge was not even registered” and in most cases, millers, in collusion with the officers, provided inflated value of the property in the deed of the pledge. Last August, the apex court had directed all the accused to furnish bank guarantees of the defalcated amount or submit pledge of deeds of the unencumbered properties. The Bihar government, last week, sought to modify the apex court’s order as the pledged securities “would not subserve public interest” as they are found to be “inadequate” or have been furnished in connection with “more than one contractual obligation and/or the securities by themselves are encumbered or the concerned properties are jointly held”.
https://economictimes.indiatimes.com/news/politics-and-nation/bihar-govt-officials-accepted-inadequate-securities-from-millers/articleshow/71947816.cms

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