Chandigarh, June 1
Procedural lapses and irregularities beyond explanation in export of rice to under-developed countries from India have come to light. Though these government-to-government exports are touted as a diplomatic goodwill gesture, these deals are seemingly commercial transactions, ensuring that middlemen and firms become direct beneficiaries.
There has been a general ban on export of non-basmati rice since October 15, 2007. However, on May 6, the Ministry of Commerce issued a notification for conditional lifting of this ban by allowing export of 10 lakh tonnes of non-basmati rice to 21 African countries. This notification clearly specifies that the exports were to be carried out through designated public sector undertakings (PSUs) like State Trading Corporation (STC), Minerals and Metals Trading Corporation (MMTC) and the 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. In one invoice available with The Tribune, though the exporter is PEC Ltd., the invoice refers to a third party, a Delhi-based private trading firm. On the other hand, while the consignee is the Ministry of Foreign Affairs and International Cooperation, the Government of Sierra Leone, the actual buyer was a commodity trader based in Switzerland.
In another invoice, the Ministry of Foreign Affairs and International Cooperation, Sierra Leone, has sought the permission from the Government of India to purchase 30,000 metric tonnes of Indian white rice for immediate shipment. This invoice further ‘requests the government that the concession to export be given to a Delhi-based trader whom we have nominated as they have the past experience to do so’.
Interestingly, Osei Adjei, former Foreign Minister of Ghana, another recipient country of rice through this government-to-government export, is now in the dock for irregularities in rice imports. The former minister’s passport has reportedly been seized and he is being investigated by Ghana’s top
investigating agency, BNI, for allegedly using state machinery to import rice worth $10
million from India and then sharing it with private traders.
A top official in the Ministry of Commerce, when contacted by The Tribune over this flouting of government-to-government export to favour select rice traders, said it was an accepted practice for the PSUs to subcontract
transactions to private parties.
“The PSUs have been roped in to channelise and keep a check on the exports. The PSUs have nominated private parties to export rice after the importing countries specified their names in invoices. Whether PSUs export directly or through private traders and whether the LCs and payments come from Switzerland or the recipient countries is not our concern. If the rice is being diverted by these recipient countries, then those governments will have to examine these irregularities,” he said.
