Mumbai: Uncertainties have continued to dog rice exporters, as one arm of the Government does not know what the other is doing.
Exporters find themselves at their wits end because of the interpretation given to the Director-General of Foreign Trade (DGFT) notification of February 7, whereby the Government prohibited with immediate effect the export of non-Basmati rice, under transitional arrangements.
CBEC fiat
Following this, on February 8, the Central Board of Excise and Customs (CBEC) advised all Customs offices across the country to stop processing documents of all rice export consignments.
This has seriously affected rice exporters who are holding valid export contracts with export price in excess of $500 a tonne or Rs 20,000 a tonne as per the extant export policy.
There is an obvious disconnect between the Commerce Ministry and the Finance Ministry, rue exporters.
• Run-up to Budget 2008-09: View Special
It appears the CBEC misinterpreted the DGFT notification which has, in effect, prohibited only those exports which are under transitional arrangement as a consequence of the ban imposed on October 15, lamented an exporter.
The latest is that there indeed is no ban on non-basmati rice exports, and that the minimum export price (MEP) would be $500 a tonne.
Clarification
The CBEC is reportedly in the process of issuing a suitable clarification to ensure that shipments of only those pre-ban contracts affected by October 15 notification (transitional arrangement) would be prohibited; and not the recent ones that comply with the MEP norm.
About 400-500 containers of rice (each with about 20 tonnes) are awaiting shipment in different ports of the country. Their documents have not been processed.
Exporters find themselves at their wits end because of the interpretation given to the Director-General of Foreign Trade (DGFT) notification of February 7, whereby the Government prohibited with immediate effect the export of non-Basmati rice, under transitional arrangements.
CBEC fiat
Following this, on February 8, the Central Board of Excise and Customs (CBEC) advised all Customs offices across the country to stop processing documents of all rice export consignments.
This has seriously affected rice exporters who are holding valid export contracts with export price in excess of $500 a tonne or Rs 20,000 a tonne as per the extant export policy.
There is an obvious disconnect between the Commerce Ministry and the Finance Ministry, rue exporters.
• Run-up to Budget 2008-09: View Special
It appears the CBEC misinterpreted the DGFT notification which has, in effect, prohibited only those exports which are under transitional arrangement as a consequence of the ban imposed on October 15, lamented an exporter.
The latest is that there indeed is no ban on non-basmati rice exports, and that the minimum export price (MEP) would be $500 a tonne.
Clarification
The CBEC is reportedly in the process of issuing a suitable clarification to ensure that shipments of only those pre-ban contracts affected by October 15 notification (transitional arrangement) would be prohibited; and not the recent ones that comply with the MEP norm.
About 400-500 containers of rice (each with about 20 tonnes) are awaiting shipment in different ports of the country. Their documents have not been processed.
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