India likely to export wheat to Bangladesh soon
India is likely to approve the export of one million tonnes of wheat with half of it to Bangladesh, for the first time since imposing restriction on supplies of the food grain abroad.
While imposing the curbs on exports on May 13, India had made it clear that this would not affect its commitment of addressing the requirements of wheat to neighbouring and vulnerable countries, reports our New Delhi correspondent quoting The Economic Times.
"It is learnt that the DGFT (Directorate General of Foreign Trade) has asked for approval of more than one million tonnes of export in the first phase against genuine Letters of Credit, about 5,00,000-6,00,000 tonnes of which is expected to be for Bangladesh," said a wheat exporter who requested not to be named.
About 2,00,000 tonnes of wheat is expected to be exported by road, while the rest may be shipped by vessels, including to other destinations, according to trade sources.
Quoting a Kolkata-based wheat exporter, The Economic Times reported that traders in Bangladesh are not in a hurry to import Indian wheat because of their limited storage capacity.
"Bangladesh will have to first sell rice from its warehouses to make space for imported wheat," the exporter said according to the newspaper.
India on May 13 banned exports of wheat amid rising food inflation and a fall in domestic output due to a severe heatwave in March-April.
However, New Delhi exempted shipments under contracts where LCs had already been opened and the latest clearance to the shipment of one million tonnes of wheat is expected under this exemption, the sources said.
The Director General of Foreign Trade (DGFT) has put up a file before the food ministry after examining the LCs issued on or before May 13, the sources said adding it was found that many companies had opened back-dated LCs and the DGFT has weeded out such applications and compiled a list of genuine LCs to be approved by the commerce minister.