‘At least 1.7 million tonnes are still lying at ports, raising quality concerns due to looming monsoon rains’
‘At least 1.7 million tonnes are still lying at ports, raising quality concerns due to looming monsoon rains’
India might quickly enable merchants to ship out about 1.2 million tonnes of wheat because it sought to clear cargoes caught at ports since final month’s sudden ban of exports of the grain, authorities and commerce sources mentioned on Wednesday.
But even after New Delhi’s permission to export that a lot, about 500,000 tonnes of wheat might stay sitting at ports, as some merchants had didn’t safe export permits, the sources with information of the matter informed Reuters.
New Delhi banned wheat exports in a shock transfer on May 14, however mentioned it might enable abroad shipments backed by already-issued letters of credit score (LCs) and to international locations that request provides “to meet their food security needs”.
Based on the LCs issued earlier than May 14, the federal government would concern registration certificates required for wheat exports, mentioned two senior authorities officers who declined to be named as they weren’t authorised to speak to the media.
Following the export ban, India has allowed wheat shipments of 469,202 tonnes, however at the very least 1.7 million tonnes are nonetheless mendacity at ports, elevating high quality issues as a result of looming monsoon rains.
“Traders with valid LCs will be allowed to export but those with insufficient documentation will not get export authorisation,” mentioned a second authorities supply.
The permission to permit shipments of the cargoes caught at ports will assist ease shortages in international locations reminiscent of Bangladesh, Sri Lanka and Nepal – the nations that rely most on Indian wheat.
The bulk of cargo would go to Bangladesh, and different seemingly locations embody Nepal, Indonesia, the Philippines and Sri Lanka, mentioned a New Delhi-based dealer with a world buying and selling agency.
Traders who had not obtained permission for exports needed the federal government to allow them to ship out to overseas international locations requesting New Delhi for wheat provides, sellers mentioned.
“These traders are asking the government to allow them to export under government-to-government deals,” the New Delhi-based dealer mentioned. “They are also asking people who have got certificates (to export) to buy their cargoes stuck at ports.”
Government and commerce sources final month mentioned India was contemplating permitting merchants to ship out a few of their wheat sitting at ports.
Source: www.thehindu.com
