The export of non basmati rice is on hold in the wake of litigation over the process adopted by the Commerce Ministry for implementation of an Empowered Group of Ministers (EGoM) decision allowing the export of 10 lakh tonnes of the same. The Directorate General of Foreign Trade (DGFT) in the notice said, “...operation and implementation of the allocation made in terms of Trade Notice of July 27 is stayed in view of the order passed by the High Court .”
Since 2008, government had banned exports of non basmati rice. On July 11 EGoM, had removed ban for the exports of non basmati rice due to record food stock and stable domestic prices. After that, DGFT, under the commerce and industry ministry reported the decision and invited exports for registration, on first come first serve basis for maximum of 12,500 tonne each between July 21 and July 22. On the application basis, DGFT had allocated the one million tonne quota to 82 exporters on July 27.
However, the entire process of allocation of export quota was challenged in the Delhi High Court, after that, Delhi High Court directed government to make no allotment till the next date of hearing. In the trade notice issued today, DGFT said, “Since the process of allotment was already completed by the time the interim order had been received, we are seeking further directions in the matter.” Whereas it announced that exports of non basmati rice was being put on hold “subject to outcome of the case.”
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