Amendment in Para 2.61 of Hand Book of Procedure (HBP) 2015 20

## Report on Amendment to Foreign Trade Policy 2015-2020 **1. Executive Summary:** This report analyzes a specific amendment to the Foreign Trade Policy (FTP) 2015-2020, as outlined in Public Notice No. 41/2015-2020 dated December 8, 2022, issued by the Directorate General of Foreign Trade (DGFT). The amendment modifies Para 2.61 of the Hand Book of Procedure (HBP) 2015-20, concerning eligible entities for quota allocation for specific agricultural commodities. Key changes include revisions to the list of eligible entities for milk powder, maize corn, and certain oils. Furthermore, the amendment removes four Central Public Sector Enterprises (CPSEs) from eligibility for quota allocation, namely MMTC, STC, PEC Limited and STCL Limited. The report aims to inform affected industries about these changes and their potential impact. **2. Introduction:** The purpose of this report is to provide a detailed analysis of the amendment to the Foreign Trade Policy (FTP) 2015-2020, specifically focusing on changes to Para 2.61 of the Hand Book of Procedure (HBP) 2015-20 as described in Public Notice No. 41/2015-2020. The analysis is based solely on the information provided in the given policy text. **3. Policy Overview:** * **Original Policy:** Foreign Trade Policy 2015-2020. * **Core Objective(s):** Based on the text, the amendment's objective is to revise the eligibility criteria for quota allocation of specific agricultural commodities under the Foreign Trade Policy 2015-2020. **4. Background and Rationale:** The amendment appears to address the need to update the list of eligible entities for quota allocation, likely in response to changes in market dynamics or government policy. The removal of the four CPSEs (MMTC, STC, PEC Limited and STCL Limited) as eligible entities suggests a shift away from centralized public sector involvement in the allocation of quotas for these commodities, potentially promoting broader participation from other organizations. **5. Key Provisions / Changes:** This section details the specific changes introduced by the amendment text to Para 2.61 of the HBP 2015-20: * **What is being changed:** Para 2.61 a, b and c of the Hand Book of Procedure HBP 201520 * **What the new rule/provision is:** The revised Para 2.61, as per Public Notice No. 40/2015-2020, now reads as follows: * **Milk Powder:** Eligible entities for Milk Powder (Tariff Code No. 0402.10 or 0402.21) and White Butter, Butter oil, Anhydrous Milk Fat (0405) are: National Dairy Development Board (NDDB), National Cooperative Dairy Federation (NCDF), and National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED). * **Maize Corn:** Eligible entities for Maize corn (Tariff Code No. 1005.90) are: National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and State Cooperative Marketing Federations. * **Crude Sunflower/Safflower Oil & Refined Rape/Colza/Canola/Mustard Oil:** Eligible entities for Crude sunflower seed or safflower oil (Tariff Code No. 1512.11) and Refined rape, colza, canola or mustard oil (Tariff Code No. 1514.19 or 1514.99) are: National Dairy Development Board (NDDB), National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), Central Warehousing Corporation (CWC), State Cooperative Marketing Federation and State Cooperative Civil Supplies Corporation. * **Difference/Effect of the change:** The amendment specifically alters the list of organizations eligible to receive quota allocations for the mentioned commodities. The inclusion or exclusion of certain entities directly impacts their ability to participate in the import or export of these goods under the FTP 2015-2020. The removal of the four CPSEs means they are no longer eligible to receive quota allocations. **6. Target Audience and Stakeholders:** The direct target audience and stakeholders affected by this amendment include: * National Dairy Development Board (NDDB) * National Cooperative Dairy Federation (NCDF) * National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) * State Cooperative Marketing Federations * Central Warehousing Corporation (CWC) * State Cooperative Civil Supplies Corporation * The previously eligible Central Public Sector Enterprises CPSEs i.e., MMTC, The State Trading Corporation of India Ltd. STC, PEC Limited and STCL Limited. * Entities involved in the production, processing, import, and export of milk powder, maize corn, sunflower/safflower oil, and rape/colza/canola/mustard oil. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** The Directorate General of Foreign Trade (DGFT) is responsible for implementing and overseeing the amendment. The mentioned organizations (NDDB, NAFED, CWC, etc.) will be responsible for adhering to the revised quota allocation guidelines. * **Timelines/Procedures:** The amendment is effective from December 8, 2022. Specific procedures for quota allocation would likely be detailed in related notifications or guidelines issued by the DGFT. * Based on the text provided, the entities that are mentioned under the new rules are now eligible to apply for quota allocation based on the product that they are categorized under. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of these changes is to streamline the quota allocation process for the specified agricultural commodities and to adapt it to current economic realities and government policy. The removal of CPSEs as eligible entities could lead to: * Increased participation of cooperative and private sector entities in the trade of these commodities. * Potentially greater efficiency and responsiveness in the supply chain. **9. Conclusion:** The amendment to Para 2.61 of the Hand Book of Procedure (HBP) 2015-20, through Public Notice No. 41/2015-2020, represents a significant adjustment to the eligibility criteria for quota allocation of key agricultural commodities under the Foreign Trade Policy 2015-2020. The changes are significant for all entities involved in the import and export of these commodities, impacting their ability to participate in the international market. The removal of the four CPSEs further emphasizes a shift in government approach towards the trade of these items. Affected industries should carefully review the revised guidelines and adapt their strategies accordingly.

Key Entities Referenced