DRI officers detain over 400 ‘natural’ rice containers at 3 ports

Over 400 natural rice containers have been detained by Directorate of Income Intelligence (DRI) personnel in JNPT, Mundra and Kandla ports following businessline’s report of alleged irregularities within the shipments.

Commerce sources stated non-organic white (uncooked) and parboiled (boiled) rice have been exported within the guise of natural rice. In consequence, shipments of natural rice throughout April-July 2024-25 fiscal (1,46,585 tonnes) exceeded the entire shipments through the earlier fiscal (1,07,727 tonnes).

These shipments (1,27,120 tonnes of white rice, 8,000-odd tonnes of damaged rice) have been made in violation of the ban on white (uncooked) and damaged rice exports from India since July 2023. Unscrupulous shippers have additionally dodged the 20 per cent export responsibility on parboiled (boiled) rice. 

Vessel halted

Commerce sources, talking on the situation of anonymity, stated of the entire shipments detained by the DRI, over 200 have been made in JNPT alone. 

The sources stated as per knowledge 22,126 tonnes and 16,547 tonnes of natural rice shipments set sail for Vietnam and Kenya however hardly 2,,000 tonnes reached their locations.  

A South India-based exporter stated the Customs Division has stopped service provider vessel mv Della from setting sail on the problem of non-organic rice being shipped out as natural rice. “Vietnam obtained lower than 2,000 tonnes of natural rice shipments from India, whereas Kenya didn’t obtain a single tonne of natural rice. In Kenya, the rice consignments have been recorded as non-organic rice. The Vietnam consignments appear to have been diverted elsewhere or misdeclaration has been made,” a supply with entry to knowledge stated. 

Origin Sikkim?

These purchases have been made at $491/tonne by Vietnam and $475 by Kenya — at ranges of non-organic white rice worth quoted by aggressive nations resembling Pakistan and Myanmar. 

As per knowledge, final fiscal, Vietnam purchased 34,152 tonnes at a mean $466 a tonne final fiscal, when even non-organic white rice costs dominated over $500 final fiscal attributable to world scarcity. Kenya didn’t import a single grain of natural rice final fiscal.  “These are some attention-grabbing knowledge that the Centre must probe,” the supply stated.

A South India-based exporter stated a few of these shipments have been shipped out as rice grown in Sikkim, a totally natural State. Sources stated the Commerce Ministry officers known as up two certification our bodies, which certify a produce to be natural for exports — primarily based in Sikkim and Jaipur, Rajasthan, and questioned them. Over two such certification businesses are concerned, they stated. 

‘Fly-by-night’ operators

One other South India-based exporter stated these exports have been made by “fly-by-night” operators. “We have been approached to ship out non-organic white rice as natural rice however we refused,” the exporter stated. 

The supply with knowledge stated preliminary data means that the paperwork for the “pretend” natural rice shipments “originated” from Bihar and Odisha. 

The supply stated many within the commerce surprise how officers of the Customs Division allowed the shipments. “However you’ve to keep in mind that Customs officers go by Agricultural and Processed Meals Merchandise Export Growth Authority (Apeda’s) provisional transaction certificates (TCs). Did anybody in Apeda examine if the ultimate TCs conformed to the amount of shipments?” the supply requested.

TRACENET entry

Different buying and selling sources stated although some could query the Customs officers checking parboiled shipments to make sure white rice was not shipped out via “misdeclaration”, it was carried out as no such certification is concerned.  “Customs officers didn’t allow steamed and idly rice too because it didn’t deal with them as parboiled rice. How can Customs examine when massive volumes are cleared by Apeda?” a second buying and selling supply stated. 

The supply stated Customs officers can’t entry Apeda’s Tracenet which may present particulars of the TCs issued. “Tracenet has provisions to point out solely ultimate TCs. That would have been a handicap for the Customs. Apeda too has provisions to examine solely ultimate TCs,” the supply stated. 

The Centre ought to provide you with provisions to hyperlink TRACENET and ICEGATE to stop such “unlawful” shipments, buying and selling sources stated. 

Prime face proof

Commerce sources stated the federal government authorities, together with DRI and Apeda, swung into motion inside hours of businessline’s report that there was “one thing fishy” over the exports of natural rice from the nation. 

They stated there was prima facie proof, primarily based on knowledge, and that is being supported by particulars from Vietnam and Kenya.

Some exporters allegedly resorted to the irregularities in export of natural rice from Kandla, Mundra and JNPT ports after Chennai and Tuticorin Customized officers cracked down following a businessline report that white rice exports have been being under-invoiced.

The Centre started curbing rice exports from September 2022 as manufacturing in key-growing areas was affected by extended dry intervals and poor rainfall. 



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