Govt Relaxes Wheat Export Ban, To Allow Export Of Consignments Registered Before May 13
Mumbai: The government on Tuesday announced the relaxation of its order banning the export of wheat. According to an official statement, it has been decided that wherever a consignment of wheat has been handed over to the Customs Department for examination and registered into their systems on or before May 13, such consignments would be allowed for export, according to an official statement.
The exemption by the commerce ministry, which pertains to the DGFT order dated May 13, which prohibited the export of wheat, is applicable to goods handed over to customs on or before May 13. Even though wheat exports have been banned, the Indian government has said exports could still take place if New Delhi approved a request by other governments “to meet their food securities needs”. Egypt was in talks with India on the exemption.
Wheat consignment leaving for Egypt is already being loaded at Kandla port. “The government also allowed a consignment of wheat headed to Egypt, which was already being loaded at Kandla port. This followed a request by the Egyptian government to permit the wheat cargo being loaded at the Kandla port,” the commerce and industry ministry said in a statement on Tuesday.
It said Mera International India, a company engaged in the export of wheat to Egypt, had also made a representation to complete the shipment of 61,500 metric tonnes of wheat. Out of this 44,340 MT of wheat had already been loaded and only 17,160 MT was yet to be loaded.
“The government has decided to allow the entire consignment of 61,500 metric tonnes and travel from Kandla to Egypt,” the ministry said.
On Tuesday, the Directorate General of Foreign Trade (DGFT), a commerce ministry arm that deals with matters related to exports and imports, also asked officials to issue contracts (RCs) to wheat exporters who have irrevocable letters of credit (LoC). The government has also allowed wheat outbound shipments with valid irrevocable LoC.
The government last week, on May 13, banned the export of wheat with immediate effect in order to control food prices in the domestic market.
“The decision to restrict wheat exports will control food prices, strengthen the food security of India and countries facing a deficit, and that India remains a reliable supplier as it is honouring all contracts,” the consumer affairs, food & public distribution ministry had said last week.
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