The Hindu Business Line : Inland container depots reject rice cargoes

The hurdles
The Government notification on export curbs silent on shipments through ICDs.
Commerce Secretary says Government will consider case for additional ports.

G. Srinivasan

New Delhi, March 10 The latest Government decision to restrict export of both basmati and non-basmati rice through four select ports of JNPT, Mumbai, Kakinda and Kolkatta has led to a piquant situation as the basmati rice exporters from Delhi are unable to send their cargo through the Inland Container Depots (ICDs).

Deemed dry ports

Exporters told Business Line here that since the notification of March 5, 2008 has not clarified about export of basmati and non-basmati rice exports through the ICDs which are deemed dry ports, customs authorities in the ICDs here are not accepting the basmati rice export cargo in ICDs for the needed customs clearance of the goods. Since the notification was issued, no rice cargo export has supervened from the ICD ports, they said, adding that they would meet the DGFT for clarification.

Available official figures published by the Directorate of Commercial Intelligence and Statistics show that during the first seven months of the current fiscal (April-October 2007) out of 5.67 lakh tones of basmati rice exported, Kandla accounted for a lion’s share (64 per cent) of 3.63 lakh tones, followed by 1.21 lakh tones by Delhi ICD which accounted for 21 per cent share. In 2006-07 and 2005-06 Delhi ICD accounted for 22 per cent and 21 per cent share respectively.

Exporters’ grouse

Exporters’ grouse is that the latest policy notification issued by the DGFT has not spelt out clearly whether ICDs qualify for exports of basmati rice from the country, with the customs officials refusing give the requisite clearance.

The President of All India Rice Exporters Association, Mr Vijay Sethia, when contacted, said the authorities should address the grievance of the exporters immediately as the policy has not said anything about ICDs. He further said though the minimum export price for basmati rice had been fixed at $900 a tonne, the non-basmati premium rice varieties were fetching higher price than the basmati price.

When contacted, the Commerce Secretary, Mr Gopal K Pillai, said most of the basmati rice exports (65 per cent) go through the Kandla ports from the country and if the exporters faced any problem in exporting rice from other than the four ports specified, “we will consider the case for additional ports if we receive representation from the rice exporters”.

More Stories on : Rice | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page