• Indian government lifts ban on wheat orders and allows exports to be booked before May 13

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    Indian government lifts ban on wheat orders and allows exports to be booked before May 13

    The government announced that it had modified the May 13 order by the DGFT/Department of Commerce, restricting wheat exports.


    Digital Desk: Due to India's export ban on India, wheat trucks and ships were stranded in ports. The Ministry of Commerce and Industry announced that they would allow traders to export consignments that have been registered with Customs by May 13.


    The ministry of commerce, industry and trade announced that the government had rescinded its May 13 order by the Directorate General of Foreign Trade, Department of Commerce, which restricted wheat exports. It was decided that exports of wheat consignments registered in their systems by Customs on or before May 13 will be permitted where they have been submitted to Customs for inspection. "


    According to DGFT's Information, the relaxations were reported by regional authorities and Customs Commissionerates.


    A news agency reported that the government's actions came simultaneously as over 4,000 wheat-laden trucks stalled outside Kandla port. Four ships with half their cargo but no orders were also stranded at Kandla port.


    Sources claim that the DGFT has authorized four ships to leave the port to export wheat. These ships were to carry 1,67,211 tonnes of wheat. The ban immediately halted the loading. These ships were able to carry 80,368 tons of wheat until then. These ships will transport wheat to Brazil, Bangladesh, Oman, and Indonesia.


    A Commerce Ministry statement stated that the government allowed loading a wheat shipment bound to Egypt at the Kandla port.


    "This was in response to a request from the Egyptian government to allow the wheat cargo to be loaded at the Kandla Port." According to the statement, government officials decided to allow the whole consignment of 61.500 MT to sail to Egypt. India has offered to buy 500,000 tonnes of wheat for Egypt.


    India's wheat production is subject to a lower tax rate than originally predicted. In February this year, the government estimated that India would produce 111 million tonnes of wheat. This figure was later revised to 105-106 million tonnes.


    Due to private buyers' lower production and higher demand, the government's wheat procurement to the PDS will also be lower this year. The government will procure only 195 million metric tons of wheat, less than half the amount procured last season (433 lakh metric tons).


    After the Russia-Ukraine conflict, Indian wheat demand increased internationally. 


    According to the government, approximately 45 million metric tonnes worth of wheat were contracted for exports during the current fiscal year 2022-2023. 14.63 million metric tonnes of wheat have been exported since April 2022. This is more than the 2.43 thousand metric tonnes exported in April 2021.


    Also Read: India Banned Wheat Exports! Know Why?