Cabinet exempts some agriculatural exporters from stockholding limit

To facilitate larger export of food and agriculture items, the Union Cabinet has exempted exporters who have IEC Code issued by the Directorate General of Foreign Trade (DGFT) from stockholding limits imposed under the Essential Commodities Act, 1955.

However, this exemption will be only available for exporters of edible oilseeds, edible oil and rice and will be limited only to the stocks meant for export and not domestic sale.

"This will help exporters benefit from economies of scale and bigger operation for optimally meeting export demands on a long-term basis," an official statement issued on Friday said.

India's agriculture exports rose to a record Rs 231,993 crore in 2012-13, up 24 per cent from the previous year due to the lifting of bans on various items. In 2012-13, India has emerged as the world's biggest rice exporter at 11 million tonnes.