Export of Non-Basmati Rice As per the export policy, export of non-basmati rice, wheat, pulses and edible oils are prohibited. However, exemption are given from time to time for export of these items with the approval of Empowered Group of Ministers (EGoM) / Cabinet Committee on Prices (CCP).

In July 2011, in the meeting of EGOM held on 11.07.2011, a decision was taken to allow export of limited quantity of 10 lakh MTs of non-basmati rice on private account out of the privately held stocks and accordingly the notification was issued by D.G.F.T. to implement these exports but the same could not happen because of some exporters having filed a petition before the Hon’ble High Court of Delhi which stayed these exports. So it is not correct that the ban on exports was lifted and re-imposed in July 2011.

The conditions for export were prior registration of contracts with DGFT on a first-come-first-served basis subject to:

(i) Export shall be made from privately held stocks.
(ii) Applications for allotment must be accompanied with irrevocable and confirmed letter of credit ,
(iii) An applicant must submit a performance bank guarantee(BG), along with the application for a value equivalent to a value of 10% of applied quantity. In case of non-completion of exports, within the stipulated time frame, this bank guarantee is liable to be confiscated. A flexibility of + or – 5% in performance is allowed.
(iv) An application can be for a maximum of 12,500 MT.
(v) This export will be subject to an MEP of US$400 per MT.

Through this system allocation was made to 82 applicants on 27.07.2011 . But on the same day after the allocation was made, an order dated 26.07.2011 of the Hon’ble High Court of Delhi was received in which Hon’ble Court had given stay on allocation of rice. Since allocation was already made, through Trade Notice No.14 dated 29.07.2011 the implementation and operation of Trade Notice No.13 was stayed till further orders. Since the matter is sub-judice, the grant of registration certificate/permission will depend upon the final outcome of the court cases

This information was given by the Minister of State in the Ministry of Consumer Affairs, Food & Public Distribution, Prof. K.V. Thomas in written reply to a question in Rajya Sabha today.

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