Andhra Pradesh’s bid to check smuggling of non-basmati rice meant for distribution through ration shops has resulted in export of the cereal from the Kakinada port coming to a halt and being diverted to other ports, exporters and traders said.
The State government has begun a similar exercise near the Visakhapatnam port too, leading to exporters raising concerns over the curbs. Such restrictions are causing quite a few problems that shippers are diverting their consignments to other ports such as Kandla or Chennai, pushing up transportation costs.
“White rice made up 60 per cent of the total exports of the cereals from Kakinada. Almost the entire white rice exports have now been diverted to other ports. The problem of ration rice smuggling is mainly related to white rice,” said a South India-based trading source, who did not wish to be identified.