Rice exporters have approached the commerce ministry over the ban on the export of non-basmati rice, saying that many of them have letters of credit from foreign buyers and if they do not fulfil the contracts, they could face international arbitration.Failing to fulfil export commitments could also hurt India's image in the global markets, they said.India banned exports of non-basmati white rice on July 20 to keep a lid on the rising price of the staple food grain in the domestic market, as late arrival of monsoon and deficient rains till mid-June had created concerns about paddy output.Companies often include international arbitration agreements in their commercial contracts. So, if a dispute arises, they are obligated to arbitrate rather than pursue traditional court litigation.Sona Masoori non-basmati rice is popular in the African nations and among the Indian diaspora in the US and Europe, and the government should look into the matter, Rice Exporters Association president BV Krishna Rao said."We have written to the commerce ministry on this and have also informed them that any further ban can damage India's image in the global markets and it will take a long time to restore the markets, where we have penetrated. We have urged the government to provide a transitional arrangement for the exporters to ship the rice to these destinations," Rao said.Rice exporters are flooded with calls from the Indian diaspora living in the US, UK and Africa for Indian non-basmati Sona Masoori rice whose price has doubled in the global markets since India imposed the ban.

Fonte notizia: The Economic Times