The directorate general of foreign trade has directed its regional authorities to issue registration of contracts to the wheat exporters who have irrevocable letters of credit, so that they can honour their contracts. The direction came after the government banned wheat exports but allowed the overseas shipments for which irrevocable LoC (Letters of Credit) have been issued on or before May 13.
The Directorate General of Foreign Trade (DGFT) is an arm of the commerce ministry which deals with exports and imports related matters.
"All RA (Regional Authorities) under the DGFT are hereby directed to issue Registration of Contracts (RC) to the exporters of wheat, preferably within a prescribed time limit of 24 hours, on submission of application, complete in all respects, by the exporters," the DGFT has said in a trade notice.
It has added that the wheat export on humanitarian ground as aid/assistance/ government-to-government shall be allowed on a case to case basis, with the specific approval of the competent authority.
India's wheat exports stood at an all-time high of 7 million tonnes, valuing USD 2.05 billion, in 2021-22 fiscal year on better demand for Indian wheat from overseas. Of the total wheat exports, around 50 per cent of shipments were exported to Bangladesh in the last fiscal.
During the current fiscal, as per estimates, 4.3 million tonnes of wheat have been contracted for exports so far.
Out of this, 1.2 million tonnes have already been exported in April and May, and another 1.1 million tonnes are expected to be shipped, commerce secretary B V R Subrahmanyam has said.
He has said that if an exporter has "a valid order -- irrevocable letters of credit -- that contract will be honoured. So, India's credibility as a reliable supplier is maintained".
Source Name:-Economic Times