India may soon allow wheat exports worth 1.2 million tonnes: Report – Times of India

MUMBAI/NEW DELHI: India may soon allow traders to send out around 1.2 million tonnes of wheat as it seeks to clear cargo stuck at ports since the sudden ban on export of grain last month, government and trade sources said. said on Wednesday.
But even after New Delhi is allowed to export that much, some 500,000 tonnes of wheat could remain sitting at ports because some traders have failed to obtain export permits, sources with knowledge of the matter told Reuters.
New Delhi on May 14 banned wheat exports in a surprise move, but said it would allow already issued credits (LCs) and overseas shipments to countries “to meet their food security needs”. request supplies.
Two senior government officials, who declined to be named, said that based on the LCs issued before May 14, the government would issue necessary registration certificates for wheat exports, as they are not authorized to speak to the media.
After the export ban, India has allowed shipment of 469,202 tonnes of wheat, but at least 1.7 million tonnes are still lying at ports, raising quality concerns due to monsoon rains.
A second government source said, “Traders with valid LC will be allowed to export, but traders with insufficient documents will not get export authorisation.”
Allowing the shipment of stranded cargo at ports will help reduce shortages in countries such as Bangladesh, Sri Lanka and Nepal – the countries most dependent on Indian wheat.
A New Delhi-based trader with a global trading firm said the bulk of the goods will go to Bangladesh, and other possible destinations include Nepal, Indonesia, the Philippines and Sri Lanka.
Dealers said the traders who have not got export permission want the government to send them abroad, requesting New Delhi for the supply of wheat.
“These traders are asking the government to allow them to export under government deals,” said the New Delhi-based trader. “They are also asking those who have certificates (to export) to buy their goods stranded at ports.”
Government and trade sources said last month that India was considering allowing traders to sit at ports to send some of its wheat out.