Post Date : May 21, 2022
The sudden ban on the export of wheat prevented dealers from loading cargoes leaving the grain stranded at the port. India is now considering allowing traders to ship out some of their wheat sitting at ports, trade and government sources said on Thursday.
Hit by searing heat, India’s wheat production output is likely to fall out by at least 5% this year from 109 million tonnes in 2021, forcing the government to ban Wheat export on Saturday.
The ban on wheat exports trapped about 1.8 million tonnes of the grain at ports, potentially forcing traders to take heavy losses.
On Tuesday, the government allowed grain awaiting customs clearance to be shipped out. But traders are pressuring the government to further relax its ban.
The administration of Prime Minister Narendra Modi is looking into the demands of wheat traders, government sources familiar with the matter told Reuters.
“We will verify the merit of the demand and no genuine trader will be harassed,” said one of the sources who did not wish to be identified in line with official rules.
The government could ask for export data for the past few months to ascertain that they are bona fide dealers.
The government is aware that many genuine exporters are stuck because of the sudden ban. Thus, the government is trying to give concessions in a way that genuine exporters are protected.
The sudden ban has halted trading in many wholesale grain markets. Domestic wheat prices have dropped more than 4%.
Along with traders, transporters are also getting impatient, with their trucks waiting at ports to unload wheat.
“Piecemeal relaxations are not going to help and the government needs to resolve the issue in the next few days to avoid a chain of (payment) defaults,” said the New Delhi-based dealer.