The case before the apex court is that the ban by the Directorate General of Foreign Trade is arbitrary, unconstitutional, and beyond its authority.

CHARU SINGH

Some of India’s rice exporters are turning to the Supreme Court for urgent intervention amid the country’s ongoing export ban, which has been in place since July 20. They seek to relax the ban to fulfill international contracts made before the export restrictions were imposed, NDTV Profit was told by people familiar with the matter.

Exporters are asking the court to order the DGFT to allow them to export of white rice (raw) 5% silky sortex variety, based on contracts made before the ban. They also want the court to include their applications within the export limit and address what they see as unfair restrictions.

The case before the apex court is that the ban by the Directorate General of Foreign Trade is arbitrary, unconstitutional, and beyond its authority. The notifications, which prohibit the export of non-basmati white rice and imposes a cap on exports to the UAE, are claimed to infringe on constitutional rights. It has been contended they fail to meet legal standards of proportionality and fairness.

The restrictions are against exporters’ fundamental rights and are inconsistent with the Foreign Trade Policy 2023, they have said. The notifications undermine legitimate business expectations and public interest, and the DGFT’s restrictions are discriminatory and lack proper legal foundation, according to them.

Abhishek A. Rastogi, representing the exporters, stressed that the courts must ensure the export ban is fair and justified.

“The courts will examine if the restrictions are reasonable, especially for contracts where exporters had already made deals, received payments, and shipped rice,” he said.

Rastogi also raised concerns about how the ban might affect international trade relationships, noting that some exporters had received advances before the ban, which could harm their long-term business ties.

Published Date: September 2, 2024