Two Days For Rice Export Registration; Traders Decry Move.

The first-come-first-serve basis registration for export of non-basmati rice will remain open only for two working days starting tomorrow, prompting traders to allege that the move would favour a few.

Besides, the government has fixed a low export price of USD 400/tonne, a move which was decried by the All-India Rice Exporters Association. It "defies all logic and if implemented may lead to a scandal".

A notification issued by the Directorate General of Foreign Trade (DGFT) late last night allowing exports of non-basmati rice after over a three-year ban practically gives only a day for exporters to prepare lengthy documents and find immediate buyers.

The DGFT in the Commerce Ministry will start receiving online applications for registration from 10 am tomorrow and close the same at 5pm the day after.

In a letter to Food and Consumer Minister K V Thomas, All India Rice Exporters Association President Vijay Setia 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," he said.

The association demanded that sufficient time should be given to submit applications for quota so that everyone gets a fair chance and "not just a few companies".

An official, however, said with a maximum limit of 12,500 tonne per application, the scope for misuse is minimal.

Besides, the minimum export price (MEP) of USD 400 per tonne has been fixed for these shipments, implying that even low-price varieties could also be shipped.

Setia said the fixing of low MEP 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".

Setia demanded immediate withdrawal of the notification and issue of fresh guidelines, fixing correct MEP which should be around USD 600 per tonne.

The decision to allow one million tonnes exports of non-basmati rice was taken by the Empowered Group of Ministers on Food on July 11.

Source : moneycontrol.com