Procedure for quota allocation and Export of Broken Rice on Humanitarian and Food Security Grounds

The Directorate General of Foreign Trade (DGFT) has recently issued a trade notice marking the revised export policy for Broken Rice.

On September 08, 2022, the Government of India Changed the export policy of Broken Rice under HS Code 1006 40 00 from “Free” to “Prohibited” through No.31/2015-2020. However, on 28th July 2023 through notification No 18/2023, export of Broken Rice was allowed on humanitarian and food security grounds based on requests received from certain countries.

With regards to the same, the requests received from the Government of Bhutan and Mali has been approved and the applications for export of Broken Rice to Bhutan and Mali is invited. To ensure objectivity and transparency, the allocation process has been defined in the trade notice as below:

Application Submission: Exporters need to submit their applications through an online portal.

Minimum Threshold: Allocation will be made with a minimum threshold of 2000 MT by Sea and 100 MT by land transport to neighbouring countries. Exporters must apply for a quantity greater than the minimum threshold to be considered.

Pro-rata Allocation: Quota allocation will be based on the pro-rata average export of Broken Rice to the respective countries during the three years preceding the fiscal year in which broken rice was prohibited or the quantity applied for, whichever is lower, subject to the minimum threshold.

Reallocation: Any unutilized quantity will be reallocated on a pro-rata basis to eligible exporters.

Exporters who have been allocated the quota of Broken Rice need to follow the outlined procedure for export authorization:

Online Application: Exporters must apply online through DGFT’s ECOM system for Export Authorizations Non-SCOMET Restricted Items. Hard copies of the application should not be sent via mail or post.

Validity: The validity of the Export Authorization will extend until March 31, 2024.

Application Period: Only online applications filed between July 28, 2023, and August 7, 2023, will be considered.

Required Documents: Exporters must submit export data for the three years preceding the fiscal year in which Broken Rice was prohibited along with their application.