In exercise of powers conferred by Section 3 of the foreign Trade Development and Regulation Act,

## Report on Amendment to Export Policy for Rice (Basmati and Non-Basmati) **1. Executive Summary:** This report analyzes an amendment to the Foreign Trade Policy 2015-2020 concerning the export of Basmati and Non-Basmati rice. The core purpose of this amendment is to modify the policy conditions related to the requirement of a Certificate of Inspection (COI) for rice exports to European countries. The key change is that from January 1, 2022, a COI from the Export Inspection Council/Export Inspection Agency (EIC/EIA) will be mandatory for rice exports to the remaining European countries, excluding Iceland, Liechtenstein, Norway and Switzerland. **2. Introduction:** This report aims to provide a comprehensive overview of the amendment to the Foreign Trade Policy concerning the export of Basmati and Non-Basmati rice, based solely on the provided policy text. The analysis focuses on the changes introduced by the amendment, their implications, and the stakeholders affected. **3. Policy Overview:** This document details an *amendment* to the existing Foreign Trade Policy 2015-2020, specifically related to paragraph 1.02 and 2.01 and ITC (HS) export policy 2018. The core objective of this amendment, as inferred from the text, is to refine the requirements for inspection certification for rice exports to specific European countries. **4. Background and Rationale:** The amendment appears to be driven by a need to standardize and potentially enhance the quality control measures for rice exports to European countries. The original policy seemingly had a blanket approach to COI requirements for European exports. This amendment fine-tunes those requirements, making the COI mandatory for a broader scope of European countries (excluding Iceland, Liechtenstein, Norway, and Switzerland) from January 1, 2022. This suggests a potential shift in export regulations or quality expectations from importing nations, thus prompting the amendment. **5. Key Provisions / Changes:** This amendment specifically alters the "Policy Condition" for Sl. No. 55 and 57 of Chapter 10, Schedule 2 of the ITC HS (Indian Trade Classification Harmonized System) Export Policy, 2018, which relates to Non-Basmati and Basmati rice respectively. * **Specific Part Changed:** The policy condition attached to the export of Basmati and Non-Basmati rice (Tariff items 1006 2000 and 1006 3020 respectively) to European countries is being modified. * **New Rule/Provision:** Previously, exports of Basmati and Non-Basmati rice to EU member states, Iceland, Liechtenstein, Norway and Switzerland were permitted subject to the issuance of a Certificate of Inspection by the Export Inspection Council/Export Inspection Agency. The new rule mandates that from January 1, 2022, a COI from the EIC/EIA is *mandatory* for exports to the *remaining* European countries (excluding Iceland, Liechtenstein, Norway and Switzerland). * **Difference/Effect of Change:** The amendment broadens the scope of the COI requirement. Where previously it might have been optional or not required for certain European destinations, it will now be mandatory for a larger segment of the European market (all countries except Iceland, Liechtenstein, Norway, and Switzerland) starting January 1, 2022. This imposes a new procedural requirement on exporters targeting these "remaining" European countries, while maintaining the pre-existing condition on Iceland, Liechtenstein, Norway and Switzerland. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders affected by this amendment are: * Indian exporters of Basmati and Non-Basmati rice. * The Export Inspection Council (EIC) and Export Inspection Agencies (EIAs). * Importers of Indian Basmati and Non-Basmati rice in European countries, particularly those *excluding* Iceland, Liechtenstein, Norway, and Switzerland. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** The Export Inspection Council (EIC) and Export Inspection Agencies (EIAs) are responsible for issuing the Certificate of Inspection. The Directorate General of Foreign Trade (DGFT) is responsible for administering the policy. * **Timelines:** The key timeline specified is that the mandatory COI requirement for the "remaining" European countries comes into effect on January 1, 2022. * Exporters need to obtain the Certificate of Inspection from the EIC/EIA to comply with the amended export regulations. This implies adjustments to export procedures and documentation. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is to enhance the quality assurance and potentially increase the competitiveness of Indian rice exports to Europe. By making inspection mandatory for a broader range of European countries, the government aims to ensure that only rice meeting specific quality standards is exported. This can enhance the reputation of Indian rice and safeguard the interests of both exporters and consumers in the European market. It is also possible that this will open up new markets within the EU for Indian rice traders. However, the policy could also have a cost impact on exporters who will now have to undergo an inspection process which they may not have previously needed to do. **9. Conclusion:** This amendment to the Foreign Trade Policy 2015-2020 represents a significant shift in the regulatory landscape for Indian Basmati and Non-Basmati rice exports to Europe. By mandating a Certificate of Inspection for a broader range of European countries, the amendment aims to enhance the quality and competitiveness of Indian rice exports. Exporters need to adapt to these changes by obtaining the necessary certifications to ensure compliance with the updated regulations. The impact will largely depend on the capacity of the EIC/EIA to efficiently handle the increased demand for inspection services and the ability of exporters to adapt to these procedural changes while maintaining their competitiveness.

Key Entities Referenced