Export quota of only broken rice (HS code 1006 40 00) for the year 2022 23.

## Report on Export Quota of Broken Rice - Notification No. 3820152020 **1. Executive Summary:** This report analyzes Notification No. 3820152020 issued by the Directorate General of Foreign Trade (DGFT) on October 12, 2022. This notification establishes an export quota of 397,267 MT for broken rice (HS code 1006 40 00) for the year 2022-23. A key finding is that the quota applies only to Letters of Credit (LCs) opened *before* September 8, 2022, with corresponding swift message exchanges predating the same date. The objective is to allow for the export of a specified quantity of broken rice under particular conditions, given that the overall export policy for this commodity is prohibited. **2. Introduction:** The purpose of this report is to provide an informative overview of Notification No. 3820152020 regarding the export quota of broken rice, based solely on the provided text. It outlines the key provisions, implementation aspects, and potential impact of this notification. **3. Policy Overview:** * This is a *new policy* establishing an export quota, not an amendment. * **Core Objective(s):** The core objective, as inferred from the text, is to permit the export of a specific quantity of broken rice (397,267 MT) under HS Code 1006 40 00 for the 2022-23 period, despite the general prohibition on the export of this commodity. The objective appears to manage pre-existing commitments (LCs) made before the overall prohibition came into full effect. **4. Background and Rationale:** The policy likely addresses a situation where a complete prohibition on broken rice exports would negatively impact parties that had already initiated export transactions (demonstrated by opened LCs) before the general prohibition was implemented. The establishment of a quota allows these pre-existing commitments to be honored to a certain extent, mitigating potential disruption and legal challenges. The text indicates that a broader policy change occurred on September 8, 2022 (Notification No.3120152020), likely imposing the prohibition. This new notification provides a mechanism to manage the transition. **5. Key Provisions / Changes:** This is a new policy, therefore, the following are the main components: * **Quota Establishment:** A specific export quota of 397,267 MT of broken rice (HS Code 1006 40 00) is established for the period up to March 31, 2023 (year 2022-23). * **Eligibility Criteria:** The quota is *only* applicable to applicants whose Letters of Credit (LCs) were opened *before* September 8, 2022 (Notification No. 3120152020). Furthermore, the message exchange date between the Indian and foreign bank swift date must also predate September 8, 2022. * **General Prohibition:** The text explicitly states that the general export policy for broken rice is prohibited. The quota is an exception under specific conditions. * **Procedure for Distribution:** The distribution of the quota amongst eligible applicants will be as per a procedure to be notified separately by the Directorate General of Foreign Trade (DGFT). **6. Target Audience and Stakeholders:** The direct target audience and stakeholders are: * Exporters of broken rice who had already initiated export transactions through Letters of Credit before September 8, 2022. * Indian and foreign banks involved in processing these Letters of Credit. * The Directorate General of Foreign Trade (DGFT), which is responsible for implementing and overseeing the quota distribution. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Directorate General of Foreign Trade (DGFT) is responsible for implementing and overseeing the quota, including defining the procedure for its distribution. * **Timelines:** The quota is valid for exports until March 31, 2023. The eligibility is tied to LCs opened, and swift messages exchanged, before September 8, 2022. * **Procedures:** A separate notification from the DGFT will outline the specific procedure for distributing the 397,267 MT quota among eligible applicants. This implies an application process and criteria beyond just the LC date. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this notification are: * Facilitation of exports for transactions already in progress before the overall prohibition on broken rice exports. * Minimizing potential financial losses for exporters and banks involved in these transactions. * Controlled and limited export of broken rice, ensuring that the overall prohibition policy is largely maintained while honoring pre-existing commitments. * Potential stabilization of international relations, avoiding contract breaches. **9. Conclusion:** Notification No. 3820152020 provides a limited exception to the prohibition on broken rice exports, allowing exporters who had initiated transactions before September 8, 2022, to complete them up to a specified quota. The notification is significant because it demonstrates the government's effort to balance policy objectives with the need to honor existing international trade commitments. The actual impact will depend on the specific distribution procedure defined by the DGFT and the number of eligible applicants.

Key Entities Referenced