Non-Basmati rice export on hold

The government has stopped the export of one million tonnes of non-basmati rice following a direction from the Delhi High Court.

"Operation and implementation of the allocation made in terms of Trade Notice of July 27 is stayed in view of the order passed by the High Court...," Directorate General of Foreign Trade ( DGFT) said.

Export of non-basmati rice had been banned since April 2008. On July 11, government had allowed one million tonne of nonbasmati rice exports in view of good stocks and stable prices. The DGFT had allocated the one million tonne quota to 82 exporters on July 27 after calling for request from exporters for a maximum of 12,500 tonnes through e-mail on July 21-22.

The ‘first come first serve’ was opposed by traders who said it benefited only those who had some prior information of exports being opened. Aprivate firm appealed before the Delhi High Court. The court told the government

to not make an allotment till the next date of hearing.

"I welcome the court decision. It was absolutely necessary to review the process," All India Rice Exporters Association ( AIREA) President Vijay Sethia told ET.