Exports of Raw Rice from Kakinada Anchorage Port Down by Half

By Vadrevu Srinivas

Exports of rice from the Kakinada Anchorage Port have been falling drastically ever since the TDP-led NDA alliance has taken charge. With the government putting up restrictions on exports of rice from ports in AP, many exporters are diverting their cargo to other ports, including Chennai.

It is estimated that the lives of 30,000 persons employed by port-based firms have been affected due to the fall in exports. There are nearly 20 such firms in Kakinada, which are unable to pay salaries to employees.

AP government took several steps following reports of illegal export of rice meant for public distribution system (PDS) through the Kakinada Anchorage Port. It set up check posts and maintained strict vigilance. The government went on to seize consignments of rice from warehouses before the commodity could be exported. It booked cases against the exporters.

Following this, some of the exporters stopped exporting rice from the Kakinada port. Others reduced their consignments of rice export. Some of the C&F agents are handling exports but collecting Rs 3 extra per kilo from the exporter.

“Due to reducing demand for rice in the global markets, prices of rice exported from Kakinada port are not viable. This is one of the reasons for rice exports dwindling from Kakinada, apart from government restrictions. Price between Rs 26 and Rs 27 per kilo is viable. But at Kakinada, we have to pay Rs 29 per kilo,” said an exporter.

Another exporter has shifted to Chhattisgarh, where rice is available at cheaper prices than Andhra Pradesh. Besides, the state has no restrictions like in AP.

Barge owners and workers and lorry owners and drivers are facing a tough time. According to one of the lorry transporters, previously lorries queued to handle cargo. But now, they have to collect a serial number and wait for days to handle cargo at the port.

AP Deputy Chief Minister K. Pawan Kalyan is determined to curb export of PDS rice from Kakinada. During his Independence Day speech, he made it clear that if the government allows export of rice without any vigilance and checking, tomorrow, the port may start handling illegal arms.

Sources disclosed that PDS rice is nowadays being milled as broken rice before being sold to exporters.

This article has been republished from The Deccan Chronicle.