Indian court allows Export of pulses to Pakistan
Pakistan Times Business & Commerce Desk

KARACHI: The High Court at New Delhi has set aside the notification of Indian Government banning export of pulses to Pakistan and allowed the export of black gram and pulses, according to Trading Corporation of Pakistan (TCP).

The court has advised the exporters to seek necessary permission from the Director General of Foreign Trade of India for the shipment of consignments waiting at Kandla Port, a report received by TCP from Delhi said.

The verdict, given on August 18, held the notification dated 4th July, 2006 of the Government of India “bad in law” and struck it down.

M/s Agri Trade India Services Pvt. Limited, the local agents of one of the suppliers M/s. Agri Corp Singapore, had challenged the notification.

The court allowed the petitioner export of black gram subject to the condition that they should get necessary permit for export of the contracted quantity to Pakistan from the DG of Foreign Trade.

The Court has also granted the right of appeal to the respondent, which may cause delay in the shipments.

The TCP had floated international tenders for import of black gram and dal mash sometime in June this year and contracts were awarded to three firms as a result of international competitive bidding.

M/s Agro Corp int of Singapore, M/s. Star Com, India and Olam Corp Singapore were awarded contracts for the supply of 51,000 MT of dal chana (black gram) at $ 623 to $ 650 per tonne.

The Letter of Credits for the imports from India were opened on June 24, 2006 (Saturday). Although Saturday was a closed holiday in TCP, the management of the corporation went extra mile to ensure that the LCs for the contracted quantity of black gram were opened before the rumored ban on export of black gram from India takes effect.

On June 27, 2006 the Indian Government imposed total ban on the export of various products including black gram. since the LC for TCP purchases had already been established, it was generally believed that the ban would not effect TCP procurement.

Subsequently, however, the Indian Director General of Foreign Trade issued anther notification on July 7, 2006 giving retrospective effect to the ban from June 22, 2006, “ as the decision of the Government prohibiting the export of pulses was got widely publicized on 22.6.2006 in the electronic and print media’.

TCP hoped that the whole contracted quantity of 51,000 MT of black gram would be available in the local market before the onset of Ramadan.●