Govt allows export of wheat consignment already registered with Customs prior to order of export restriction
The government has notified several changes to its order on wheat exports issued on May 13th by the Directorate General of Foreign Trade (DGFT), Department of Commerce. It has been agreed that wheat consignments that have been handed over to Customs for examination and registered into their systems on or before 13.5.2022 will be allowed to be exported.
The administration also permitted the loading of a wheat shipment bound for Egypt at the Kandla port. The Egyptian government had requested that the wheat cargo be loaded at the Kandla port. M/s Mera International India Pvt. Ltd., the company responsible for the wheat’s export to Egypt, had also given a representation for the completion of loading of 61,500 MT of wheat, of which 44,340 MT had already been loaded and only 17,160 MT remained to be loaded. The administration decided to let the entire shipment of 61,500 MT to sail from Kandla to Egypt.
The Government of India had previously restricted wheat exports in order to manage India’s overall food security situation and to support the needs of neighbouring and vulnerable countries that have been adversely affected by sudden changes in the global wheat market and are unable to access adequate wheat supplies. This restriction, according to the order, will not apply in cases where prior commitments have been made by private trade via Letter of Credit, as well as situations where the Government of India grants permission to other countries to meet their food security needs and on the request of their governments.
The order served three main purposes: it ensured India’s food security and inflation control, it assisted other nations facing food deficits, and it maintained India’s dependability as a supplier. The decree also attempted to provide a clear direction to the wheat market in order to prevent wheat supply hoarding.