China clears 14 Indian rice companies for export amid trade war with US

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China has agreed to import from 14 of the 19 registered exporters from India, while the remaining five— mostly of basmati sellers — have been asked to improve storage and isolation facilities before applying afresh.

China allows import of only from India, but with this clearance, even can be exported. The clearance comes amid rising tension between the United States and China over China is viewing for newer markets to increase its inventories. Export from India has been caught under wraps since it failed to clear Chinese food safety and quality norms.

China alleged India’s rice consignments contained ‘khapra’ (cabinet) beetle and were unfit for consumption, which Indian authorities and traders denied.

In an agreement signed on June 9, China agreed to import from India as well. The shipments had to comply with the Chinese plant quarantine laws and regulations. India has to ensure that processing and storage houses of the rice to be exported to China is free from pests — Trogoderma granarium and Prostephanus truncatus — and live insects. The exported rice will must be free of soil, seeds of weeds, paddy hull, loose bran and any of plant debris of rice.

exports from the country during April-February 2018 stood at $3.26 billion as against $2.53 billion in 2016-17. India wants to accelerate exports to China with a view to bridging the ballooning trade deficit, which has increased to $63.12 billion in 2017-18 from $51.08 billion in the previous fiscal.

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