India, a traditional rice exporter, is most likely to import rice first time in decades to meet public distribution system (PDS) requirements in its two north-eastern states Tripura and Mizoram as transportation of rice to these two states is likely to be disrupted by the proposed railway gauge conversion work on the 220-kilometer Lumding (Assam)-Badarpur-Agartala (Tripura) line.

Local sources say the government is planning to import around 500,000 tons of rice from Myanmar. Due to the proposed railway conversion works, it is estimated that transporting rice from surplus states such as Punjab or Andhra Pradesh to Tripura and Mizoram would cost the Food Corporation of India (FCI) around Rs.3,200 per quintal (around $529 per ton), including the cost of rice at around Rs.2,755 per quintal (around $455 per ton).

In contrast, importing rice from neighboring Myanmar would coat around Rs.2,400 per quintal (around $397 per ton), including transportation from borders. Considering this huge cost difference, the government may bend towards importation.

After the cabinet approves the imports, state-owned Metals and Minerals Trading Corporation of India (MMTC) or PEC Limited would invite tenders for imports. An official from Food Ministry told local sources that since storage facilities in these two states are not so developed, the government is keen on expediting imports to avoid any kind of disruptions in PDS supplies.

All the seven north-eastern states require 320,000 tons per month for PDS purposes, according to the Food Ministry.

Owing to this proposed railway works, Indian government is planning to transport rice from Andhra Pradesh to Tripura through Bangladesh. It already transported around 10,000 tons of rice on a trial basis. Discussions over further transportation are yet to happen between the two governments.

Source:- oryza.com