Govt Admits to Flouting of Norms in ’08 Rice Export .

After three years and a lot of hue and cry, the government has admitted that three public sector units (PSUs) - State Trading Corporation (STC), Minerals and Metals Trading Corporation (MMTC) and PEC - who were entrusted with export of non-basmati rice on government-to -government accounts, did not follow a transparent procedure for non-basmati rice exports in 2007-08.

In a statement to the Lok Sabha on November 19, Commerce and Industry Minister, Anand Sharma, said that the matter has been referred to the Central Vigilance Commission (CVC) for its advice. “With the exception of Mauritius, the exporting PSUs of the department of commerce did not follow transparent procedure for selection of domestic associates or determination of the price at which the rice was exported,” Sharma’s written statement said.

All these exports had taken place between December 2007 and March 2009. The Indian government had banned rice exports from October 2007, to stave off shortages at home. Subsequently, the curbs were partially eased as output and government stocks grew, and exports of non-basmati rice were allowed only on government-to-government accounts, to be routed through PSUs like STC, MMTC and PEC.

The Tribune had earlier highlighted the procedural lapses and irregularities in export of rice to under-developed countries from India. Though these government-to-government exports were touted as diplomatic goodwill gestures, these deals were commercial transactions, ensuring that middle-men and firms became direct beneficiaries.

In 2007, there was a conditional lifting of this ban by allowing export of 10 lakh tonnes of non-basmati rice to 21 African countries. This clearly specified that the exports were to be carried out through designated public sector undertakings like State Trading Corporation STC, MMTC and PEC.

However, documents available with The Tribune, show that that all these exports were being referred to a third party - a private trading company.

In one invoice available with The Tribune, though the exporter is PEC LTD, and the invoice refers to a third party, a Delhi-based private trading firm. On the other hand, while the consignee is the Ministry of Foreign Affairs and International Cooperation, Government of Sierra Leone, the actual buyer was a commodity trader based in Switzerland.

In another invoice available with The Tribune, the Ministry of Foreign Affairs and International Cooperation, Government of Sierra Leone, has sought the permission from Government of India to purchase 30,000 metric tonnes of Indian white rice for immediate shipment. This invoice further ‘requests the government that the concession to export be given to a Delhi-based trader whom we have nominated as they have the past experience to do so’.

Show-cause notices have also been slapped on the officials allegedly responsible for hugely disproportionate profits to private parties and denial of legitimate profits to PSUs, the statement by the commerce minister said. The possibility of collusion cannot be ruled out, the statement added.

Source : tribuneindia.com