India Agrees To Export Rice To Sri Lanka

India has agreed to export 6,000 MT of rice to neighbouring Sri Lanka after Sri Lankan President Mahinda requested India to export the crop in order tro counter the high inflation due to spiralling food prices in the country.

The contracted stock was earlier held back after New Delhi had imposed restrictions on export of rice from the country. However the stock is now expected to reach Sri Lanka by next week.

Analysts forecast rice exports from India, the world's second-biggest grower of the grain, may fall this year as appreciation of the rupee make overseas shipments less competitive while domestic consumption increases.