The government has announced some relaxation in the May 13 order issued by the Directorate General of Foreign Trade (DGFT), the Commerce Department, to restrict wheat exports. It has been decided that wherever wheat consignments have been handed over to Customs for testing and registered in their system on or before May 13, 2022, such consignments will be allowed to be exported.
The government has also allowed shipments of wheat to Egypt, which are already being loaded at the port of Kandla. This comes after the Egyptian government requested permission to load wheat cargo into the port of Kandla. Mera International India Pvt. Ltd. Ltd., a company assigned to export wheat to Egypt, also made a representation to complete the loading of 61,500 metric tons of wheat of which 44,340 metric tons had already been loaded and only 17,160 metric tons remained to be loaded. The government has decided to allow a full shipment of 61,500 metric tons and has allowed it to travel from Kandla to Egypt.
The Indian government had earlier restricted wheat exports to manage the overall food security situation in India and to meet the demand of neighboring and vulnerable countries which were adversely affected due to abrupt changes in the global wheat market and were unable to access adequate wheat supply. .
According to the order, the restriction would not apply where previously promised through private trade bonds, as well as the Government of India has allowed other countries to meet their food security needs. At the request of their government.
The order serves three main purposes: ensuring India’s food security and controlling inflation, it helps other countries facing food shortages and it maintains India’s credibility as a supplier. The purpose of the order is to provide a clear direction in the wheat market to prevent stockpiling of wheat supply.