Wheat Transparency
In response to consecutive years of diminished wheat production due to heat waves, India is implementing a proactive measure to prevent hoarding and price spikes.
The government today announced some relaxation to its 13 May order on restricting wheat exports.
”It has been decided that wherever wheat consignments have been handed over to Customs for examination and have been registered into their systems on or prior to 13 May, such consignments would be allowed to be exported,” a government note said.
The government also allowed a wheat consignment headed for Egypt, which was already under loading at the Kandla port.
This followed a request by the Egyptian government to permit the wheat cargo to be loaded at the Kandla port. M/s Mera International India Pvt. Ltd., the company engaged in the export of the wheat to Egypt, had also given a representation for completion of loading of 61,500 MT of wheat of which 44,340 MT had already been loaded and only 17,160 MT was left to be loaded.
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The government decided to permit the full consignment of 61,500 MT and allowed it to sail from Kandla to Egypt.
The Government had earlier restricted wheat exports to manage the overall food security situation in India and to support the needs of neighbouring and vulnerable countries that are adversely affected by the sudden changes in the global market for wheat and are unable to access adequate wheat supplies.
According to this order, this restriction would not apply in cases where prior commitments have been made by private trade through a Letter of Credit as well as in situations where permission is granted by the Government of India to other countries to meet their food security needs and on the requests of their governments.
The order served three main purposes: ensuring India’s food security and checking inflation; helping other countries facing food deficits; and maintaining India’s reliability as a supplier. The order also aimed to provide a clear direction to the wheat market to prevent the hoarding of wheat supplies.
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