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Message: <blockquote data-quote="lkdood" data-source="post: 1891590" data-attributes="member: 92282">India is said to be dragging its feet on an urgent request from the Sri Lankan government for supply of 100,000 tons of rice.Days after the request was made through official channels, New Delhi is yet to respond, trade sources told this website’s newspaper.A leading rice trader in Sri Lanka said the External Affairs and Commerce ministries, and even the Prime Minister’s Office are involved in the decision-making process as India itself faces soaring inflation, especially of food products including rice.Poor arrivals in the market, apparently due to a bad crop and adverse weather conditions, and a high rate of inflation forced India to recently ban the export of non-basmati rice. However, in response to calls from Bangladesh and South Africa, India released 500,000 tons each to both countries. But there seems to be difficulty in releasing the 100,000 tons Sri Lanka has sought.India, perhaps, fears that a shortage of the staple cereal might add to the burden of the Indian masses already reeling under a rate of inflation of over 7 percent. And to the ruling party, any rice shortage could be particularly embarrassing in a pre-election year. But official sources said many ministries and departments need to be consulted before exemptions from the ban can be authorised, and that this was time-consuming.It might take up to two months from the date of request for a shipment to arrive, an official said on condition of anonymity.There are two issues to be settled. One is an exemption from the export ban and the other is an exemption from the floor price, which is currently US$ 1,000 per ton FOB, or Free on Board. “For Sri Lanka, $1,000 per ton is unaffordable,” a market source said. “India can give the exemptions if there is a political need or will to do so. There may have been a compelling political reason to supply half a million tons of rice each to Bangladesh and South Africa. Therefore, the need of the hour is a strong political push from Colombo,” the source said.The Sri Lankan government says it is getting 50,000 tons of rice from Myanmar immediately, and a further 50,000 tons will be sought. But trade sources say there have been only two shipments from Yangon, totaling 7,000 tons. Even this limited quantity will be reportedly arriving only by April 25.Thailand has been a major exporter of rice but it has raised its floor price to US$1,000 per ton. “Therefore, the best bargain will be to buy from neighbouring India. But to do this, Sri Lanka must have excellent relations with its political leaders and officialdom,” a trade source said. Meanwhile, Sri Lankan government is using strong-arm methods to get traders to unload their stocks and sell at government-controlled prices.<a href="http://www.newindpress.com/NewsItems.asp?ID=IEH20080421044647&Page=H&Title=Top+Stories&Topic=0" target="_blank">newindpress</a></blockquote>

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