One million tonnes of non-basmati rice exports, which was allowed by the Commerce Ministry, have been put on hold 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...,” the Directorate General of Foreign Trade (DGFT) said today.
The Government had allowed one mt of non-basmati rice exports in the wake of improvement in domestic supply and stable prices of the grain. Exports had been prohibited since April 2008.
However, as situation improved this year, the Group of Ministers had decided to open exports subject to a ceiling of one mt.
On July 19, DGFT notified the Government’s decision to allow exports and has made allocation of the entire quota to 82 exporters on July 27.
But the process was contested in the Delhi High Court which directed the Government “that no allotment shall be made till the next date of hearing“.
While the court had stayed the allocation, by the time the order to this effect reached DGFT, the process of allotment had already been completed.
While the DGFT has sought opinion of the Law Ministry in this regard, it had to stay the operation and implementation of the allotment.