Enough Time For Rice Exporters To Register With DGFT: Govt

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)

22 July 2011  

Enough Time For Rice Exporters To Register With DGFT: Govt

A day after rice exporters alleged that insufficient time for registration for shipments and low export price would favour a few, the government today said that it has given adequate time and traders are free to sell the commodity at higher prices as agreed with buyers.

"There is at least one clear day as gap between the issue of notification (allowing 10 lakh tonned of non-basmati rice and sending e-mail (applying for exports),"an official release said.

Notification was issued on July 19 and emails were to be sent on July 21 and July 22, it added.

Traders yesterday had alleged that the first-come-first- serve basis registration for export of non-basmati rice will remain open only for two working days and it would favour a few.

In a letter to Food and Consumer Minister K V Thomas, All India Rice Exporters Association President Vijay Setia had alleged that such a short-notice is meant only to help those traders who had a prior inkling.

"Giving such a short time indicates that applications for quota allotment can be made only by those who had prior intimation and not the trade in general,"Setia had said.

The official release said only simple information like IEC number, address and quantity of the rice intended to be exported are requied in the applications."It does not require either a letter of credit or bank guarantee or even the details of the buyer,"it added.

On export prices, the releases said,"The minumum export price of USD 400 is only a floor price. There is no restriction on exporting rice at a higher rate, as agreed between the importer and the exporter.

Setia had alleged that said the fixing of low export price of USD 400 a tonne would lead to diversion of low-priced grain from ration shops to exports.

Noting that FCI's procurement cost would work out to over USD 500 , Setia said:"In the face of these facts, setting an MEP of USD 400 defies all logic and if implemented, may lead to a scandal."

He said allowing exports of rice at low MEP was not only against the domestic traders but also"anti-farmer".

Source: indiareport.com