Ban On Export Of Onions: It Will Be In The Interest Of Justice If Export Of Pending Consignments With Valid Shipping Bills Are Allowed Says Bombay HC, Seeks Centre's Reply [Read Petition]

Division bench of Justice Ujjal Bhuyan and Justice Abhay Ahuja were hearing the writ petition filed by the Horticulture Produce Exporters Association and Rohan Shah, proprietor of Fair Agro Enterprises and a member of the first petitioner organisation, challenging the said notification as it prevented the export of onions by members of the petitioner association even though they held valid shipping bills registered before the notification was issued.

The petition was filed by Advocate Anupam Dighe of India Law Alliance, Dr.Sujay Kantawala and Senior Advocate Darius Shroff.

Senior Counsel Pradeep Jetly submitted on instructions that a decision has been taken by the Respondents to the effect that those consignments of onions which were loaded prior to issuance of the said notification will be allowed to be exported.

At this stage, Senior Advocate Darius Shroff arguing on behalf of the petitioners submitted that the goods of the petitioners are yet to be loaded. In the meantime, the validity of shipping bills will lapse on September 26.

The bench observed-

"It appears that the consignments of the Petitioners were with the customs authority prior to issuance of the impugned notification. While we appreciate the decision taken by the Respondents to mitigate the hardship of those exporters where consignments were already loaded for export, we believe that it would be in the interest of justice if the same benefit is extended to the goods of the Petitioners because according to them their consignments were with the customs authority prior to issuance of the notification."

Court clarified that the since the Court is now hearing the matter, validity of shipping bills will not be construed to have lapsed-

"We expect a decision to be taken expeditiously as admittedly the goods are perishable. Since the matter is before us, we make it clear that the shipping bills prior to issuance of the impugned notification shall not be construed to have lapsed till we decide the matter. Mr. Jetly, learned Sr. Counsel shall obtain instructions from the Respondents and thereafter appraise the Court on the next date."

The matter will now be heard on September 29.

The petition states-

"Petitioners are challenging the notification issued by the Directorate General of Foreign Trade, Ministry of Commerce and Industry on September 14 whereby onion exports have been prohibited and transitional provisions in case of change of policy applicable under Foreign Trade policy 2015-20 are made inapplicable to the purported prohibition of the export of Onions and the arbitrary and illegal action of the Directorate General of Foreign Trade and The Commissioner of Customs in preventing the exports of the first petitioner's members and second petitioner, even after the registration of the shipping bill in the system."

Moreover, the petitioners have also submitted how the said notification will further add to the farmer's burden -

"Members of the first petitioner procure the goods from the farmers from all over Maharashtra etc and are able to give a fair and good price to the farmer's goods which are meant for the export market. It is a known fact that the farmers are in a financial crisis since they are not able to get a good price for their produce locally and there is always surplus stock which, for all these years are freely allowed to be exported and the country earned valuable Foreign Exchange. In any case the total export of onion accounts only 20% of the total produce of the country. The sudden and abrupt passing of the impugned notification dated September 14 has also blocked the avenue of the farmers to receive fair price for their produce and it would further add to the financial crisis of the farmers in Maharashtra."

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