In exercise of powers conferred by section 3 read with section 5 of the Foreign Trade Development and Regulation Act

## Policy Analysis Report: Import of Urad Beans - Notification S.O. 1372(E) **1. Executive Summary:** This report analyzes Notification S.O. 1372(E) issued by the Ministry of Commerce and Industry, Department of Commerce, on March 26, 2021. This notification serves as a partial modification to Notification S.O. 1017(E) dated March 3, 2021, concerning the import of Urad Beans. The core purpose of this amendment is to notify the annual quota of 4 Lakh MT of Urad beans for the fiscal year 2021-22 and to specify the entities eligible for import and the method of quota allocation. Key findings indicate that Millers, Refiners, and Traders are permitted to import Urad Beans under this quota, and the allocation will be determined through an algorithm-based lottery system. **2. Introduction:** This report aims to provide a comprehensive analysis of Notification S.O. 1372(E) regarding the import of Urad Beans, based solely on the information provided in the policy text. The analysis focuses on understanding the purpose, provisions, and implications of this amendment. **3. Policy Overview:** * This notification is an amendment to Notification S.O. 1017(E) dated March 3, 2021, which itself relates to the broader Foreign Trade Policy, 2015-2020. * The core objective, as inferred from the text, is to define and regulate the import of Urad Beans under specific HS codes for the fiscal year 2021-22. **4. Background and Rationale:** This notification is an amendment to a prior notification. The likely reason for this specific amendment is to formalize the annual quota for Urad bean imports (4 Lakh MT), specify the eligible importers (Millers, Refiners, and Traders), and introduce a lottery-based allocation system, which was not clearly defined in the prior notification. The amendment appears designed to provide clarity and a fair allocation mechanism. **5. Key Provisions / Changes:** This notification *amends* the existing policy regarding Urad bean imports. The key changes introduced are: * **Specific Part of Original Policy Changed:** The notification modifies the import policy of Urad Beans under HS Codes 0713 3110, 0713 9010 and 0713 9090 of Chapter 7 of ITC HS, 2017, Schedule I Import Policy. * **New Rule/Provision:** * The annual quota for Urad bean imports is set at 4 Lakh MT for the fiscal year 2021-22. * Imports will be permitted for Millers, Refiners, and Traders. * The quota will be allocated equally to a predetermined number of applicants through an algorithm-based lottery system. * **Effect of the Change:** The amendment clarifies the quantity of Urad beans allowed for import, specifies the types of businesses eligible to import, and introduces a lottery system to ensure equitable distribution of the quota amongst eligible applicants. This replaces any potentially ambiguous allocation methods previously in place. **6. Target Audience and Stakeholders:** Based on the provided text, the directly affected stakeholders are: * Millers involved in processing Urad beans. * Refiners involved in processing Urad beans. * Traders dealing in the import and export of Urad beans. * The Directorate General of Foreign Trade (DGFT), responsible for implementing the lottery system. **7. Implementation Aspects (Inferred):** * **Responsible agency:** The Directorate General of Foreign Trade (DGFT) is responsible for notifying the procedure for the algorithm-based lottery system. The Ministry of Commerce and Industry, Department of Commerce, is the issuing authority. * **Timelines:** The notification pertains to the fiscal year 2021-22. * **Specific to the Changes:** The implementation hinges on the DGFT's development and notification of the procedure for the algorithm-based lottery. The changes introduced by this notification necessitate the creation and execution of this lottery system. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of these specific changes introduced by the amendment is: * **Clarity and Predictability:** By setting a specific quota, the government aims to provide clarity for importers and manage the overall import volume of Urad beans. * **Fair Allocation:** The algorithm-based lottery system is intended to provide a transparent and equitable method for distributing the quota among eligible Millers, Refiners, and Traders. * **Regulation of Imports:** By restricting imports to specific entities (Millers, Refiners, and Traders) and implementing a quota, the government likely aims to regulate the import of Urad beans to support domestic producers and prevent market disruptions. **9. Conclusion:** Notification S.O. 1372(E) is a significant amendment clarifying the import policy for Urad Beans for the fiscal year 2021-22. It establishes a specific import quota, identifies eligible importers, and introduces an algorithm-based lottery system for quota allocation. This amendment is intended to bring transparency, fairness, and regulation to the import of Urad beans, impacting Millers, Refiners, Traders, and the DGFT. The implementation of the lottery system by the DGFT is crucial for achieving the intended outcomes of this amendment.

Key Entities Referenced