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PROHIBITION ON EXPORT OF BASMATI & NON-BASMATI RICE
Date : 07 Mar 2008
Location : New Delhi
PRESS NOTE
It is hereby informed that the Central Government has, vide Notification No.82 dated 5.3.08, with immediate effect, implemented the following decisions;
(i) Export of Basmati rice will be permitted only if the Minimum Export Price (MEP) on FOB basis is US $ 900 per ton or Rs.36,000/- per ton.
(ii) MEP (on FOB basis) for export of non-basmati rice has been raised to US $ 650 per ton or Rs.26,000/- per ton.
(iii) Export of basmati and Non- basmati rice will be restricted through the following 4 (Four) ports only:
(1) Kandla
(2) Kakinada
(3) Kolkata
(4) JNPT, Mumbai
However, this restriction would not apply to export of rice allowed under various exemptions/relaxations like export under food aid programme.
(iv) No export under transitional arrangements under Para 1.5 of the Foreign Trade Policy 2004-09, as amended from time to time, shall be allowed for restrictions imposed vide the Notification No. 82 dated 5.3.08.
Only the quantities being loaded in the ships at the time of ban will be allowed to be exported under the transitional arrangements.
The above implies that no export of rice will be permitted against valid irrevocable commercial letters of credit opened before the ban as envisaged in para 1.5 of the Foreign Trade Policy 2004-09.
2. Notification No. 82 dated 5.3.08 is available on website of the DGFT – http://www.dgft.gov.in)
3. It may be recalled that earlier export of Basmati rice was free and there was no restriction of MEP. Also, export of non-basmati rice was allowed only if the MEP, on FOB basis, was above US $ 500 per ton or Rs.20,000/- per ton.
With Notification No. 82 dated 5/3/08, MEP (on FOB basis) of US $ 900 per ton or Rs.36,000/- per ton has been fixed for export of Basmati rice while MEP for export of non-basmati rice has been raised to US $ 650 per ton or Rs.26,000/- per ton.
4. It may be further recalled that earlier there was no restriction regarding mode of export of basmati or Non-basmati rice. However, with Notification No. 82 dated 5.3.08, export of basmati and Non-basmati rice has been restricted through the ports of Kandla, Kakinada, Kolkata & JNPT, Mumbai only.
No export of rice will be permitted through any other port or through rail or road, except the quantities allowed earlier vide different exemptions/ relaxations.
Directorate General of Foreign Trade, Ministry of Commerce & Industry New Delhi, 7th March, 2008
RJ/MRS
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