Raw rice exports from the Kakinada Anchorage Port have plunged in the reign of the TDP-led NDA alliance. The government is putting up restrictions on raw rice exports from ports in Andhra Pradesh. Consequently, exporters are diverting their cargo to other ports such as Chennai. It is estimated that the decline in exports has led to the loss of around 30,000 jobs in port-based firms. As a result, there are around 20 such firms in Kakinada, which are unable to pay salaries to employees.
Steps taken by the Government, halting Raw Rice exports
The Andhra Pradesh government took several steps following reports of illegal exports of rice that were for the Public Distribution System (PDS) via the Kakinada Anchorage Port. These steps include setting up check posts and maintaining strict vigilance. The government seized consignments of rice from warehouses before the commodity could be exported. Not only this, but it also booked cases against the exporters.
Subsequently, some of the exporters halted rice exports from the Kakinada port. On a related note, other exporters reduced their consignments of rice exports.
An exporter stated that due to the decreased demand for rice in the global markets, the prices of rice exported from Kakinada port are not viable. This is one of the reasons that rice exports have decreased from Kakinada, apart from government restrictions. A price between Rs 26 and Rs 27 per kilo is viable. However, they have to pay Rs 29 per kilo at Kakinada.
Exporters shifted to Chhattisgarh for Rice exports
Furthermore, another exporter shifted to Chhattisgarh, where rice is available at cheaper prices than in Andhra Pradesh. Apart from this, the state has no restrictions like in Andhra Pradesh.
Additionally, Barge owners, workers, lorry owners and drivers are battling with a difficult time. One of the lorry transporters stated that lorries queued to handle cargo, but in recent times, they have to collect a serial number and wait for days to handle cargo at the port. Andhra Pradesh Deputy Chief Minister K. Pawan Kalyan is resolute to eliminate the illegal export of PDS rice from Kakinada. During his Independence Day speech, he clarified that if the government allows the export of rice without any vigilance and checking, tomorrow, the port may start exporting illegal arms also