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`FCI wheat export tender norms need to be simplified'

Our Bureau

NEW DELHI, May 20

THE Associated Chambers of Commerce and Industry (Assocham) has urged the Government to exempt ``established exporters'' from the conditions imposed by the Food Corporation of India (FCI) for participation in its recent open tender on sale of wheat to pa rties interested in exporting the foodgrain.

In a representation to Mr Shanta Kumar, Minister of Food, Consumer Affairs and Public Distribution, the Chairman of the Assocham International Trade Committee, Mr Anil Agarwal, has said that the conditions laid down by FCI are cumbersome and time-consumi ng and some of them need to be done away with.

As against the minimum tender quantity of 50,000 tonnes for participation in the FCI tender, the chamber has suggested that the floor level be placed at 15,000 tonnes.

Assocham is also of the view that the tender conditions on earnest money deposit, security deposit and bank guarantee are ``unwarranted'' in the case of ``established exporters'' and should, therefore, be abolished.

The chamber has suggested that recognised export houses and trading houses and other recognised status-holders (established exporters) be exempted from the earnest money deposit, security deposit and bank guarantee stipulation. Instead, it has recommende d that these status-holders can be asked to execute a legal undertaking for complying with all the rules and regulations.