The government has allowed export of one million tonnes of non-basmati rice through private trade and fixed the export price at USD 400 per tonne. The Empowered Group of Ministers on food, headed by Finance Minister Pranab Mukherjee, had on July 11 decided to lift the over three-year old ban on non-basmati rice. The ban was imposed in April 2008 to check inflation.
“Export of 10 lakh tonnes of non-basmati rice has been permitted on private account.This export will be subject to an MEP (minimum export price) of USD 400 per tonnes,”the Directorate General of Foreign Trade (DGFT) said in Notification No. 60 (RE-2010)/2009-2014, dated 19.07.2011.
According to the Notification No. 60 (RE-2010)/2009-2014, dated 19.07.2011, exporters would have to register their contracts with DGFT on a first-come-first-serve basis, provided shipments should be undertaken from privately held stocks. The application for exports can be for a maximum of 12,500 tonnes and it must be accompanied with irrevocable and confirmed letter of credit. The application would be received through email from July 21 and the last date for applying for exports is July 22.
“List of successful allottees will be declared on July 27, by applying cut wherever the quantity of 10 lakh tonnes is exhausted on a first come-first served basis,”the notification said.
Notification No. 60 (RE-2010)/2009-2014, New Delhi, 19th July,2011
Subject: Exemption for export of 10 lakh MT non basmati rice on private A/C – regarding
S.O.(E) In exercise of the powers conferred by Section 5 of Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) read with Para 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government hereby makes, with immediate effect, the following amendment to Notification No. 38 (RE-2007)/2004-2009, dated 15.10.2007 read with Notification No. 93 (RE-2007)/2004-2009 dated 1.4.2008, as amended from time to time.
2. Through Notification No. 21 (RE-2010)/2004-2009 dated 10.2.2011 sub para 2.1.14 was added in Notification No. 93 (RE-2007)/2004-2009 dated 1.4.2008. Now another sub-para 2.1.15 is added as under:
“2.1.15 Ten lakh MT of non-Basmati rice is allowed for export subject to the following conditions;
i) Prior Registration of contracts with DGFT on a first-come-first-served basis subject to:
(a) Export shall be made from privately held stocks.
(b) Applications for allotment must be accompanied with irrevocable and confirmed letter of credit,
(c) An applicant must submit a performance bank guarantee, 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.
(d) An application can be for a maximum of 12,500 MT.
(e) This export will be subject to an MEP of US$400 per MT.
ii) Applications for intent to export will be sent to riceexport-dgft@nic.in . The modalities for allocation and the format in which e mails are to be sent is attached as Annexure I and Annexure II respectively, to this Notification.
3. All other provisions of the Notification No.93 (RE-2007)/2004-09 dated 1st April, 2008, as amended from time to time, shall remain unchanged.
4. Effect of this notification:
Export of 10 lakh MT of Non Basmati rice has been permitted on private account subject to conditions under para 2.1.15 and modalities for registration of contracts as per Annexure 1 to this notification .
(Anup K. Pujari)
Director General of Foreign Trade
e-mail: dgft@nic.in
