Export of Rice to Sri Lanka and Nepal Allowed through PEC/MMTC

[DGFT Notification No. 33 dated 3^rd March 2010]

Subject: Prohibition on Export of Non-basmati Rice – exemption 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, as amended from time to time.

2. Following shall be added at the end of Para 2.1 of the Notification No. 93 (RE-2007)/2004-09 dated 1^st April, 2008:

“2.1.11 With immediate effect, ban on export of Non-basmati rice shall also not be applicable to export of 20,000 MT of rice (Ponni Samba) to Sri Lanka through PEC.

2.1.12 With immediate effect, ban on export of Non-basmati rice shall also not be applicable to export of 25,000 MT of Non-basmati rice to Nepal through MMTC.”

3. The above export shall be subject to the following conditions:-

(a) The rice to be exported shall be with a minimum of 25% of brokens;

(b) Export will be undertaken directly, and only by the designated PSU/s. There will not be any associate exporter

(c) Recipient country will be advised by MEA to enter into contracts for the exports only with the designated PSUs, in terms of GATT provisions and designation of a private contractor by the importing country, to supply rice will not be entertained. MEA will inform the concerned PSU(s) about the designated buying agency in the importing country;

(d) The PSU/s will procure rice through tender as per guidelines prescribed by the Department of Commerce vide O. M. No. 7/4/2009 –FT(ST) dated 18.2.2010;

(e) The PSU(s) will buy rice from the markets all over the country. The Supplier(s) will provide the necessary certificate to the PSU(s) confirming that rice has been procured to this effect. The supplier(s) will also provide a certificate to the effect that the rice is bought from those rice mills who have already met their levy rice requirements as stipulated in their respective States.

(f) The PSU /s will procure rice at a price as close to as possible to the derived MSP so as not to disturb the existing price situation in the domestic market;

(g) PSU(s) will supply rice to the designated country at a commercially negotiated price;

(h) The end point verification of the exports reaching the destination will be filed by the PSU(s) and for this purpose, the PSU(s) will obtain landing certificates from the port(s) of discharges.

(i) The above quantity shall be exported by PSUs during KMS 2009-10;

3. All other provisions of the Notification No.93 (RE-2007)/2004-09 dated 1^st April, 2008, as amended from time to time, shall remain unchanged, and shall continue to apply.

4. This issues in public interest.