Press Information Bureau

Government of India

Ministry of Commerce & Industry

17-August-2011 17:24 IST

Export of Non-Basmati Rice

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 condition:

(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.

The DGFT Notification No. 60 of 19.7.2011 was uploaded on the website of DGFT on 19.7.2011 at 8:31:53 PM. In the calendar of events of Notification No. 60 of 19.7.2011, the start date of receiving e-mail was prescribed as 10:00 hrs on 21.7.2011 and close date as 17:00 hrs on 22.7.2011. In Notification No. 60 of 19.7.2011, it was mentioned that the e-mails received by DGFT headquarters before 1000 hrs on 21.7.2011 and after 1700 hrs on 22.7.2011 will not be taken into account. In the same notification it was also mentioned that in case more than one application (e-mail) is received from same IEC Number or same Applicant, only first e-mail will be taken into account. Subsequent e-mails will be ignored.

As decided by EGOM, DGFT has notified all the conditions approved by EGOM and it was decided to first call for intent to export through e-mail for shortlisting of the successful allottees by applying a cut whenever the quantity of 10 lakh MTs is exhausted on a first come first served basis. A wait list of applicants will also be maintained in case any of the successful allottee is not able to produce complete documents or obtain Registration Certificate. In the second stage the applicants were required to submit all the prescribed documents to the concerned Regional Authorities/DGFT (HQ) for scrutiny and issue of Registration Certificate enabling them to export the rice. The DGFT vide Trade Notice dated 27-07-2011 notified allocation of quantities of export of rice to various exporters numbering 82 and a waiting list of 30 applicants. However, Hon’ble High Court of Delhi in its interim order passed on 27-07-2011 in W.P. No. 5237/2011 filed by Kannu Aditya(India) Ltd. has directed that no allotment shall be made till the next date of hearing.

This information was given by the Minister of State for Commerce and Industry Shri Jyotiraditya M. Scindia in a written reply to a question, in the Rajya Sabha today.

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