Chandigarh, August 22
The rice export scam, wherein private firms were favoured to export basmati rice to underdeveloped countries under the garb of government-to-government exports, just got murkier. Two companies in Andhra Pradesh have now been found to be exporting a superfine variety of rice under the ‘non basmati’ category, by claiming that it was being procured from elsewhere.
Despite the ban on export of non-basmati rice, these two firms, based in Ranga Reddy district and Puducherry, had been granted special permission by the Ministry of Commerce to export non-basmati rice (there was a ban on export of non-basmati rice since October 15, 2007). Since the Andhra government, too, had imposed a ban on export of non-basmati varieties to stem the rising price of such rice, the two exporters misled the Centre by giving false information that they were procuring paddy from other states, but only milling it in AP and then exporting it under the ‘non-basmati’ category.
The two firms had been granted permission to export 25,000 tonnes (12,500 tonnes each) of non-basmati rice from AP. But these traders were resorting to export of superfine rice which was being procured from AP itself. The issue was brought to the notice of Andhra Chief Minister Y.S. Rajasekhar Reddy, who has now shot off a letter to Union Minister for Industry and Commerce Anand Sharma, asking him to cancel the export permissions given to these firms.
Sources in the rice trade informed TNS that this exposure was just the tip of the iceberg. They said there could be many other private firms that were reportedly exporting superfine variety and basmati variety of rice under the non-basmati category. It is learnt that ever since the ban on export of non-basmati rice has been imposed, 13 lakh tonnes of non-basmati rice has been exported under the name of government-to-government exports.
In June, The Tribune had exposed procedural lapses and irregularities in export of rice to underdeveloped countries from India. Though these government-to-government exports are touted as a diplomatic goodwill gesture, these deals are commercial transactions, ensuring that middle men and firms become direct beneficiaries. Earlier on May 6 this year, the Ministry of Commerce issued a notification for conditional lifting of this ban on non-basmati exports by allowing export of 10 lakh tonnes of non-basmati rice to 21 countries located in Africa.
This notification clearly specifies that the exports were to be carried out through designated public sector undertakings like State Trading Corporation (STC), Minerals and Metals Trading Corporation (MMTC) and PEC. However, documents available with The Tribune reveal that all these exports were being referred to a third party, which is a private trading company.
The issue was even debated in Parliament last month and opposition members had staged a walkout on the inability of the government to explain its position. They have now demanded an inquiry by a Joint Parliamentary Committee into the matter.
