Companies defied govt ban on pulses exports

Suspect companies exported around 56,548 tonnes of pulses even after the government banned exports in June last year, Minister of State for Finance S S Palnimanickam said today.

The Cabinet had decided to ban pulses exports on June 22, 2006, while the Directorate General of Foreign Trade (DGFT)notified the ban five days later on June 27, 2006.

Later the DGFT issued another notification banning pulses exports contracted or letters of credit opened on or after June 22. Also a clause of the Foreign Trade Policy 2004-09, provided for transitional arrangements allowing exports or imports in specified cases, even when such a ban is imposed.

"Under this arrangement, certain exporters continued to export pulses till March 2007 when a complete ban was imposed in a notification dated March 9," Palanimanickam told the Rajya Sabha adding that a total 84,081 tonnes of pulses were exported since June 22 until the total ban was imposed, which were allowed in pursuance of court orders.

The minister said the preliminary investigations revealed that the companies might have manipulated letters of credit in order to misuse the transitional clause of the Foreign Trade Policy. The commerce and industry ministries had jointly ordered a probe by the Central Bureau of Investigation into alleged export of pulses by suspect companies identified as Jet King International, Kohinoor Foods and KRBL.

He also clarified that preliminary investigations do not reveal collusion of officials from the customs department.