India puts wheat export under prohibited category

63
2
India puts wheat export under prohibited category

The Central Government has put wheat export under the prohibited category in order to manage overall food security of the country and to need the support of the neighbouring and vulnerable countries.

The Directorate General of Foreign Trade DGFT, in an official notification issued Friday evening, stated that as a transitional arrangement, wheat export will be allowed in case of shipments where the irrevocable letter of credit ILOC has been issued on or before May 13.

It added that exports will be permitted on the basis of permission granted by the Central Government to other countries to meet their food security needs and on request of their governments.

The government of India is committed to providing for the food security requirements of India, neighbouring and other vulnerable developing countries that are adversely affected by the sudden changes in the global market for wheat and are unable to access adequate wheat supplies, read the notification.

India is expected to send trade delegations to nine countries including Morocco, Tunisia and Indonesia to explore the possibility of boosting wheat shipments, as it aims to export 10 million tons of grain in 2022 -- 23.

The Commerce Ministry has set up a task force on wheat exports with representatives from various ministries, including transportation, shipping and railways, and exporters, under the aegis of the Agricultural and Processed Food Products Export Development Authority, or APEDA, it said on Thursday.

There is a rise in demand for Indian wheat in global markets and farmers, traders and exporters have been advised to follow all the quality norms of the importing countries to ensure that India emerges as a reliable supplier of the grain.

According to estimates by the Directorate General of Foreign Trade, India exported 7 million tons of wheat in 2021 -- 22, which is valued at USD 2.05 billion.

Approximately 50 per cent of wheat was exported to Bangladesh in the last fiscal.

In April, 4 million tonne wheat were sold, and exports may reach 1.5 MT in May.