The empowered group of ministers (EGOM) has allowed the export of 1 million tonnes of non-basmati rice, subject to a minimum export price (MEP) of $400 per tonne.
The decision was taken at its meeting on 11 July, minister of state for commerce and industry Jyotiraditya M Scindia informed the Rajya Sabha in a written reply yesterday.
The meeting also decided that the export of non-basmati rice would be done by private parties from privately held stocks, on purely commercial basis, he stated.
The Directorate General of Foreign Trade (DGFT) would make prior registration of all export contracts on a first-come-first served basis.
Applications for allotment must be accompanied by irrevocable and confirmed letters of credit.
An applicant must submit a performance bank guarantee, equivalent to 10 per cent of the value of the applied quantity along with the application. In case of non-completion of exports within a stipulated time frame, this bank guarantee is liable to be confiscated. However, a flexibility of + or - 5 per cent in performance will be allowed.
The maximum quantity per applicant will be 1.25 per cent of the total quantity released, ie, 12,500 tonnes.