Ban on rice, wheat exports extended till next April

Ban on rice, wheat exports extended till next April

We are writing on behalf of the South Indian Rice millers / exporters. The Goverment of India has imposed a ban on the export of non-basmati rice. Currently, due to an international supply deficit created by this ban - there is a massive demand for south indian varities of rice worldwide. This demand constitutes mainly of the large expatriate population based internationally.

The goverment of India has attempted to regulate and has thus authorised the export of basmati rice through 4 exit ports , namely JNPT, Mundra, Kandla and Pipavav, although export is also being allowed through the various Inland Container Depots (I.C.D.'s) in Northern India , in a highly corrupt and arbitrary manner. Also an export duty of Rs. 8000/- P.M.T. has been imposed on basmati rice.

4 months after the imposition of the ban - and yet, non-basmati south indian varities of rice are finding their way into the international market - they are openly available on the supermarket shelves across U.A.E. in particular where they are being exported/smuggled/sold at 100% profits.

The goverment policy is ironic and biased. Although our business is being curtailed - a mechanism has been facilitated by corrupt goverment/customs officials through which export of non-basmati rice is taking place under the guise of basmati rice from the various ICD’s across Northern India.

The current ''market rate'' being charged by the goverment/custom officials to pass of non-basmati rice as basmati rice for its subsequent export is Rs. 50000/- per container. The same can be openly availed of at the various ICD’s across North India and also at JNPT.

There is ample physical evidence to prove my claim in the form of goods that are -

1.) being loaded from the various ICD’s across North India and at JNPT.

2.) in transit to JNPT/Mundra/Kandla/Pipavav from the ICD’s across North India.

3.) lying in JNPT/Mundra/Kandla/Pipavav awaiting shipment.

We do not understand why, the goods which have been loaded at the ICD’s across North India are not being counterchecked at the exit port. It seems that the DRI/Customs have been blindfolded at the four exit ports also.

To further our complaint, find below the names of 2 smugglers prominent in a long list of such, with a brief description of only some of their illegal activities.

1.) C.L. International , Delhi

2.) Arya International / Jindal Chawal Nigam , Delhi

They are both exporting non-basmati south indian varities of rice under the guise of basmati rice in a very big way , from ICD’s in and around Delhi.

Arya International / Jindal Chawal Nigam , Delhi is also getting factory stuffing done for sugar/rice in a big way. The containers are stuffed with rice at the back and camouflaged with 2 stacks of sugar at the front , this is then declared as sugar and exported in a highly illegal manner. The sugar is then sold off in the domestic market without payment of any excise duty on the same. Thus , the following cases become applicable on them -

1.) Misdeclaration of goods

2.) Excise Duty evasion on sugar

3.) Export of non-basmati rice (prohibited for export)

4.) Illegal collection of 4% on sugar under the DPEB scheme

It is thus neccesary that strict and immediate action be taken in this regard. Please feel free to e-mail me regarding any queries concering this matter, i shall however like to preserve my confidentiality and hence would not like to entertain any phone calls etc. This e-mail has been sent to the Media, Custom and Centeral Excise and also the D.R.I. for prompt action.

Thanking You,



Yours sincerely,



S. Gopinath