The government is letting wheat shipments go out as long as irrevocable letters of credit (L/C) were issued on or before May 13, when the export ban on the food grain was put in place to keep prices from going up.
In response to the prohibition order of May 13, the DGFT, an arm of the commerce ministry, has granted registration certificates for around 1.6 million tonnes of wheat to exporters with a valid letter of credit, an official has said.
There are exceptions for L/Cs issued before May 13, when the export embargo on wheat was enforced to keep prices from increasing, according to a statement from the government.
Russian-Ukrainian hostilities have had a significant influence on global wheat markets since the two countries are major stakeholders in the industry. Almost a quarter of the world’s wheat supply comes from Russia and Ukraine.
In order to transport consignments, exporters would need to register with the regional authorities of the Directorate General of Foreign Trade (DGFT). saladsup.com
Currently, Russia has given RCs for around 1.6 million tonnes of wheat, according to an official, who said that since Russia has begun exporting wheat via Turkey, world prices may stabilise.
In 2021-22, India’s wheat exports would reach 7 million metric tonnes, worth USD 2.05 billion, thanks to an increase in global demand for Indian wheat.
About half of the country’s wheat exports went to Bangladesh in the most recent fiscal year.
A list of the top ten foreign buyers of Indian wheat for the years 2020-21 shows that ten different nations – including Bangladesh as well as Nepal and the United Arab Emirates – imported the bulk of India’s wheat supplies.
Wheat exports from India make up less than one percent of the global total. Wheat is the country’s second-largest crop. In 2020, it accounted for around 14 percent of global output.
The vast majority of the country’s 107.59 million metric tonnes of wheat is used for domestic purposes. Wheat is grown mostly in Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan, Bihar, and Gujarat among India’s major wheat-producing states.
