Nath orders CBI inquiry into pulse export issue

New Delhi, Mar 22 (UNI) Commerce and Industry Minister Kamal Nath today said the Government had already instituted a CBI inquiry a week ago to look into the allegations of the Bharatiya Janata Party (BJP) about ''gross corruption'' behind the continued export of pulses and wheat.

He said the CBI would unearth any wrongdoing that might have been committed by some exporters.

According to an official release, Mr Nath rejected as baseless the allegations of the BJP.

In the wake of rising prices of essential commodities, Cabinet Committee on Prices (CCP) and Committee of Secretaries were constantly reviewing the prices and domestic availability of essential commodities including pulses, an official statement said adding that various decisions are being taken to check the prices of these commodities.

Earlier, the BJP alleged ''gross corruption'' behind the continued export of pulses and wheat in violation of the government's measures to check prices and asked Prime Minister Manmohan Singh to ''reveal why these exemptions were granted and who allowed them.'' BJP Spokesman and former Union Minister Ravi Shankar Prasad said the government had promised to ban export of pulses and wheat to contain prices but the ''exemptions granted worth Rs 600-Rs 700 crore had made a mockery of misery of the common man.'' Releasing a ''detailed letter and the official orders to back'' his allegation, the BJP Spokesman pointed out that the gazette notification dated June 27, 2006, said the ban on exports was to be in place for another six months but ''consignments were already effected against advance licences issued prior to this notification.'' The government had taken many decisions to keep the prices of pulses under check, the release added.

''Committee of Secretaries (COS) meeting held on June 19, 2006 decided that the Department of Commerce will process the proposal for issuing necessary orders banning the export of pulses for the next six months.'' ''While, the meeting of CCP held on June 22, 2006, decided to ban export of pulses till March 31, 2007, another meeting of the COS on June 27, 2006, decided that the Department of Commerce will take immediate steps for a notification for banning export of pulses,'' the release said.

''The Directorate General of Foreign Trade (DGFT) issued a notification on June 27, 2006 banning export of pulses for six months from June, 22 2006.'' In another meeting of the COS held on July 4, 2006, it was decided that export of pulses, contracted/LC opened between June 22 and 27, 2006, will not be permitted by DGFT in view of the CCP decision to ban exports of pulses and an order to this effect will be issued, the release added.

''On February 24, 2007, Association of Pulses Manufacturers-Exporters of India, Indore represented before the Commerce and Industry Minister that some exporters have been exporting pulses even after the ban and only the small exporters have suffered from this ban. Commerce and Industry Minister ordered immediate inquiry and report,'' the release said.

The foreign trade policy provides for transitional arrangements as per para 1.5 of the Foreign Trade Policy (2004-09) which reads as ''In case an export or import that is permitted freely under this policy is subsequently subjected to any restriction or regulation, such export or import will ordinarily be permitted notwithstanding such restriction or regulation, unless otherwise stipulated, provided that the shipment of the export or import is made within the original validity of an irrevocable letter of credit established before the date of imposition of such restriction''.

Thus the transitional arrangements flow from the foreign trade policy, and apply to all changes, unless specifically excluded, the release said.

In the later orders of the DGFT, this arrangement has been specifically excluded in order to achieve tighter control on domestic supplies, it added.

UNI