Basmati MEP Set at $900

[DGFT Notification No. 05 dated 7^th September 2009]

Subject: Export of Rice – MEP and conditions regarding

In exercise of the powers conferred by Section 5 read with Section 3(2) of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) and also read with Para 1.3 and 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, and Notification No. 83 (RE-2008)/2004-2009 dated 27.01.2009, as amended from time to time.

2. Entry at Para 2 under “Nature of Restriction” at Sl. No. 45AA relating to minimum FOB price shall stand substituted as,-

“2. Export permitted only if the Minimum Export Price (MEP) is US $ 900 per ton or Rs. 41,400/-per ton FOB.”

3. Export of Basmati rice, as above shall be subject to the additional condition that foreign commission upto 12.5% is to be allowed for computation of MEP and any discount /commission in excess of 12.5% will not be allowed for calculation of MEP (and FOB price will have to be higher to that extent).

4. This issues in Public Interest.