Annexure -B

IMPORT DUTY STRUCTURE & REGIME

A.  Import of Wheat

·        Import duty on wheat was reduced from 50% to 5% on 28.06.2006 and to Zero % w.e.f. 09.09.2006.

·        In view of good progress of procurement for the Central Pool the Government decided in May 2008 not to import wheat during the year 2008-09. 

·        On 05.03.2009 the Government decided that Import of wheat at Zero duty may be continued till further orders and may be reviewed periodically keeping in view domestic wholesale prices and landed price of imports.

·        On 31.03.2009 the Government has withdrawn the full exemption of custom duty which was imposed vide notification no. 21/2002-Cutoms dated 01.03.2002 and imposed a basic custom duty of 30% advalorem on wheat flour w.e.f. 01.04.2009.

B.  Import of Rice

·        Import of rice allowed at zero duty from 01.03.2008 to 01.04.2009.

·        The Government has withdrawn on 31.03.2009 the full exemption on customs duty which was imposed vide notification no. 21/2002-Cutoms dated 01.03.2002 and imposed a basic custom duty of 70% to 80% advalorem on semi-milled or wholly-milled rice w.e.f. 01.04.2009.

EXPORT DUTY STRUCTURE & REGIME

A.     Export of Wheat

·        Export of rice and Wheat from the Central Pool stocks was stopped w.e.f. 11.8.2003. After meeting the pending commitments of exports, sale of foodgrains for commercial exports was totally stopped w.e.f 1st October, 2004. As per orders issued vide O.M. No. 176(1)/2003-Py.I dated 25th March, 2008 of this Department, export of rice, wheat and wheat products from Central Pool is to remain discontinued till further orders. However, humanitarian assistance/aid to needy countries has been given, from time to time, on need basis, at the prevailing export price on the date of lifting.

·        Export of wheat on private account was banned vide DGFT’s Notification dated 09.02.2007.

·        Export of wheat products (maida, rava/sirgi, whole meal atta and resultant atta) was banned from 08.10.2007.

B.       Export of Rice:-

·                 Export of non-basmati rice from the country was banned vide DGFT’s Notification dated 15th October, 2007. Subsequently Minimum Export Price (MEP) was fixed for export of non-basmati rice, which was revised from time to time. Details regarding revision of MEP are as under:-

DGFT Notification No. & date	MEP
45(RE-2007)/2004-2009, dated 31.10.2007	Export permitted if MEP is more than US $ 425.00 per ton FOB
61(RE-2007)/2004-2009 dated 12th December, 2007	Export permitted if MEP is more than US $ 425 or Rs. 17,000 per ton FOB
68(RE-2007)/2004-2009 dated 27.12.2007	Export permitted if MEP is more than US $ 500 or 20,000 per ton FOB
82(RE-2007)/2004-2009 dated 5.3.2008	Export permitted if MEP is more than US $ 650 or 26,000 per ton FOB
89 (RE-2007)/2004-2009 dated 27.3.2008	Export permitted if MEP is more than Us $ 1000 or 40,000 per ton FOB

In view of the tight position of rice in the domestic market, export of non-basmati rice was prohibited w.e.f. 1st April, 2008.

·                 For export of basmati rice a minimum export price was fixed. Till 19.1.2009, MEP of the basmati rice was US $ 1200 per ton or Rs 48,000 per ton w.e.f 1.4.2008.    In addition, a customs duty of Rs.8000 per ton had also been imposed on export of basmati rice vide Notification   dated 10.5.2008.

·                 The  Minimum Export price of basmati rice was reduced from $ 1200/tonne to $ 1100/tonne or Rs. 49500/- per tonne w.e.f 20.1.2009 and in the interest of promoting export of basmati rice, the export duty has been removed w,e,f, 20.1.2009.

·                 Export of PUSA 1121 non-basmati rice of 2008 of Kharif crop was allowed vide DGFT’s notification dated 5th September, 2008 to ensure remunerative prices to the farmers, subject to FOB fixation at minimum US $ 1200/ton and port-of-shipment stipulation through 6 ports only (Kandla, Kakinada, JNPT, Mumbai, Mudra and Pipavav).

·                 Further, it was decided by the Government in November 2008 to treat PUSA 1121 variety of rice as basmati. 

·                 It has been decided in the meeting dated 05.03.2009 of the EGoM that a quantity of 20 lakh tons of rice on diplomatic basis through Ministry of External Affairs to African nation/friendly countries in KMS 2008-09 will be exported. This includes 55,000 tons of rice which have already been permitted to Nigeria, Senegal, Ghana and Cameroon, out of the quantity of 2.25 lakh tons of non-basmati rice approved by EGoM on 05.08.2009.

After 05.03.2009 Government has approved for export of non-basmati rice to 21 African countries.

·                 The following quantity of rice was approved for export to various countries:-

S.N	Country/ Destination	Quantity Permitted	Quantity Exported	Balance	Agency	Date of DGFT Notification
1.	Ghana	15,000	15,000	NIL	STC	13.10.2008
2.	Senegal	15,000	NIL	15,000	STC	-do-
3.	Nigeria	15,000	NIL	15,000	STC	-do-
4.	Cameroon	10,000	NIL	10,000	STC	-do-
	Total	55,000	15,000	40,000
5.	Nepal (for WFP)	1,591
6.	Bhutan	10,000
7.	Nepal	15,000	NIL	15,000	STC	05.12.2008
8.	Sri Lanka	1,484
	Total	28,075	NIL	15,000
9.	Bangladesh	5,51,010*	5,50,504	506	STC-   1,00,000 PEC-   1,00,000 WBECSC-99,794 NAFED-    99,700 MMTC-1,00,000 LMJ Intl.-50,000 Govt. of WB-1,010#	01.04.2008
10.	Madagascar	50,000	50,000	NIL	STC	-do-
11.	Sierra Leone	40,000	40,000	NIL	PEC	-do-
12.	Comoros	25,000	8,500	16,500***	MMTC	-do-
13.	Mauritius	10,000***	9,950	50	STC -1,000 MMTC – 9,000	-do-
	Total	6,76,010	6,58,954
14.	Burkina Faso	24,200	NIL	24,200	MMTC	06.05.2009
15.	Cameroon	21,700	NIL	21,700	MMTC	-do-
16.	Cote D’lvoire	1,44,900	NIL	1,44,900	MMTC	-do-
17.	Egypt	48,300	NIL	48,300	MMTC	-do-
18.	The Gambia	36,250	NIL	36,250	MMTC	-do-
19.	Mali	24,200	NIL	24,200	MMTC	-do-
20.	Somalia	24,200	NIL	24,200	MMTC	-do-
21.	Tunisia	5,550	NIL	5,550	MMTC	-do-
22.	Zanzibar	12,100	NIL	12,100	MMTC	-do-
23.	Benin	24,200	NIL	24,200	STC	-do-
24.	Ghana	68,800	NIL	68,800	STC	-do-
25.	Guinea Bissau	24,200	NIL	24,200	STC	-do-
26.	Liberia	96,600	NIL	96,600	STC	-do-
27.	Mozambique	24,200	NIL	24,200	STC	-do-
28.	Togo	72,400	NIL	72,400	STC	-do-
29.	Zambia	24,200	NIL	24,200	STC	-do-
30.	Nigeria	1,17,100	NIL	1,17,100	PEC	-do-
31.	Senegal	1,41,300	NIL	1,41,300	PEC	-do-
32.	Mauritius	15,000	NIL	15,000	PEC	-do-
33.	Sierra Leone	38,500	NIL	38,500	PEC	-do-
34.	Dijbouti	12,100	NIL	12,100	PEC	-do-
	Total	10,00,000	NIL	10,00,000
	Grand Total	17,59,085	6,73,954	10,55,000

* 1 lakh MT each by STC, PEC, WBECSC, NAFED & MMTC

** STC – 1,000 MTs, MMTC – 9,000 MTs

***  Short Closed as L/C not opened

#  As relief material

The following officers may be contacted for information regarding above, if required :-

Sl. NO.     Name & Designation            Address                           Telephone No.

1.            Dr. Joy I. Cheenath,                    Krishi Bhawan                23382956

      Joint Secretary                            Room No. 158                23097028 (Fax)

2.            Shri N.K. Sharma,                      Krishi Bhawan                  23382533

            Director                                        Room No. 284                 (Tele fax)