The government has imposed restrictions on the export of Basmati rice and has said that its exports would be permitted only against minimum export price (MEP) on FOB basis at $ 900 ( Rs 36,000) a tonne.
The MEP on FOB basis for export of non-basmati rice has been raised to $ 650 (Rs.26, 000) a tonne
According to a notification issued by the directorate general of foreign trade (DGFT), the export of Basmati and non-Basmati rice will be restricted through only four ports namely Kandla, Kakinada, Kolkata and JNPT, Mumbai. However, this restriction would not apply to exports of rice allowed under various exemptions/relaxations like export under food aid programme.
“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 under the present notification,” the official press release said and clarified that only the quantities being loaded in the ships at the time of this notification would be allowed to be exported under the transitional arrangements. Further no export of rice will be permitted against valid irrevocable commercial letters of credit opened before the issue of the present notification on March 5, 2008.
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 $ 500 (Rs.20, 000) a tonne
It may be further recalled that earlier there was no restriction regarding mode of export of basmati or Non-basmati rice. However, with present notification exports 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.