The Empowered Group of Ministers (EGOM) has allowed the export of 10 lakh tons of non-basmati rice, subject to a Minimum Export Price(MEP) of USD 400 per Ton, in its meeting held on 11th July, 2011. It was also decided that the export of non-basmati rice would be done by private parties from privately held stocks on purely commercial basis. Besides, prior registration of all export contracts would be done by DGFT on a first-come-first served basis subject to the following conditions:
(1) Applications for allotment must be accompanied by irrevocable and confirmed letters of credit.
(2) 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 a stipulated time frame, this bank guarantee is liable to be confiscated. However, a flexibility of + or – 5% in performance will be provided.
(3) Maximum quantity per applicant may be set at 1.25% of the total quantity released, i.e., 12,500 MT.
This decision has been notified by Directorate General of Foreign Trade (DGFT) vide Notification No. 60(RE-2010)/2009-14 dated 19th July, 2011.
This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Jyotiraditya M. Scindia, in a written reply in the Rajya Sabha today.
