No Stock Control under ECA for Export of Rice, Oil and Oilseeds

The Commerce and Industry Minister Anand Sharma has welcomed the Order issued by Department of Consumer Affairs to exempt stocks of edible oil, edible oilseeds and rice meant for export from the stock holding limit under the Essential Commodities Act. The exporters have been demanding that they should not be subjected to stock holding limit prescribed under the Essential Commodities Act, if they have merchandize stocks of such commodities meant for exports.

The DGFT had taken up this matter with the Department of Consumer Affairs. The Department of Consumer Affairs have issued Removal of (Licensing requirements, Stock limits and Movement Restrictions) on Specified Foodstuffs Order, 2002 on 9th January 2014.

This will address the long felt need of such exporters and reduce their transaction cost.

[Ministry of Consumer Affairs, Food and Public Distribution Order dated 9^th January 2014]

In exercise of the powers conferred by Section 3 of the Essential Commodities Act, 1955 (10 of 1955), the Central Government hereby makes the following Order further to amend the Removal of (Licensing requirements, Stock limits and Movement Restrictions) on Specified Foodstuffs Order, 2002, namely:-

1. (1) This Order may be called the Removal of (Licensing requirements, Stock limits and Movement Restrictions) on Specified Foodstuffs (Amendment) Order, 2014.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. In the Removal of (Licensing requirements, Stock Limits and Movement Restrictions) on Specified Foodstuffs Order, 2002, in clause 7, the existing Explanation shall be numbered as Explanation 1 thereof and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely:-

“Explanation 2: If a wholesaler or retailer or dealer having Importer-Exporter Code Number issued by the Directorate General of Foreign Trade is able to demonstrate that the whole or part of his or her stocks in respect of edible oil, edible oilseeds and rice are meant for exports, then, the stocks meant for exports shall be excluded for the purpose of calculation of stock limits”.

[F. No.11/1/2012-ECR&E]