INDIA is likely to gain the most from the new global norms for rice exports recently adopted by the United Nations’ (UN) Food and Agricultural Organization (FAO).
The Codex Alimentarius Commission, UN’s food standards body, has adopted new standards to protect consumer health worldwide. These include setting out maximum acceptable levels of arsenic (less than 0.2 mg/kg) in rice.
This means the US will not be able to export any rice as the level of arsenic in its produce exceeds permissible limits. Trade sources have alleged that rice produced there contains more than 0.3 mg/kg of arsenic as compared to less than 0.2 mg/kg in India.
"Therefore, there will be a natural exit for the United States from the global rice market. This evacuated space may benefit India," said Mr M. P. Jindal, President of the All India Rice Exporters’ Association (AIREA).
Of the estimated 40.7 million tonnes (mt) of global rice trade in 2014, the US’ contribution is pegged at 2.7 mt—the country’s total surplus out of over 7.5 mt of annual output.
"The United States was lobbying with the FAO for rejecting the implementation of the Codex norms. But, thankfully, the FAO accepted the norms, which will eliminate the United States from the rice export market," said Mr Gurnam Arora, Joint Managing Director of Kohinoor Foods, one of the largest Basmati exporters from India.
India exported around 11 mt of rice in FY14, of which 3.76 mt was of the Basmati variety while the non-Basmati variety contributed the remaining 7.13 mt, according to data compiled by the Agricultural & Processed Food Products Export Development Authority (APEDA).
The Codex Alimentarius Commission, UN’s food standards body, has adopted new standards to protect consumer health worldwide. These include setting out maximum acceptable levels of arsenic (less than 0.2 mg/kg) in rice.
This means the US will not be able to export any rice as the level of arsenic in its produce exceeds permissible limits. Trade sources have alleged that rice produced there contains more than 0.3 mg/kg of arsenic as compared to less than 0.2 mg/kg in India.
"Therefore, there will be a natural exit for the United States from the global rice market. This evacuated space may benefit India," said Mr M. P. Jindal, President of the All India Rice Exporters’ Association (AIREA).
Of the estimated 40.7 million tonnes (mt) of global rice trade in 2014, the US’ contribution is pegged at 2.7 mt—the country’s total surplus out of over 7.5 mt of annual output.
"The United States was lobbying with the FAO for rejecting the implementation of the Codex norms. But, thankfully, the FAO accepted the norms, which will eliminate the United States from the rice export market," said Mr Gurnam Arora, Joint Managing Director of Kohinoor Foods, one of the largest Basmati exporters from India.
India exported around 11 mt of rice in FY14, of which 3.76 mt was of the Basmati variety while the non-Basmati variety contributed the remaining 7.13 mt, according to data compiled by the Agricultural & Processed Food Products Export Development Authority (APEDA).
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