Govt allows export of non-basmati rice at $400/tn MEP

The government has allowed export of one million tonne of non-basmati rice through private trade and fixed the export price at $400 per tonne. 

The Empowered Group of Ministers on food, headed by Finance Minister Pranab Mukherjee, had on July 11 decided to lift the over three-year old ban on non-basmati rice. The ban was imposed in April 2008 to check inflation.

"Export of 10 lakh tonne of non-basmati rice has been permitted on private account... This export will be subject to an MEP (minimum export price) of $400 per tonne," the Directorate General of Foreign Trade (DGFT) said in a notification issued late yesterday. 

According to the circular, exporters would have to register their contracts with DGFT on a first-come-first-serve basis, provided shipments should be undertaken from privately held stocks. 

The application for exports can be for a maximum of 12,500 tonne and it must be accompanied with irrevocable and confirmed letter of credit.

The application would be received through email from July 21 and the last date for applying for exports is July 22. 

"List of successful allottees will be declared on July 27, by applying cut wherever the quantity of 10 lakh tonne is exhausted on a first–come-first–served basis," the notification said. 

India's rice production increased to 95.32 million tonne in 2010-11 crop year (July-June) as against 89.09 million tonne in the previous year.