May 19, 2022

India permits wheat exports awaiting customs clearance

India's government has permitted wheat exports awaiting customs clearance, easing export restrictions after banning international sales of the staple grain on Saturday, Reuters reported.

They also said they will allow wheat shipments to Egypt.

The government said wheat consignments that have been handed over to Customs for scrutiny and have been entered into the (Customs) systems will be authorised to be transported out on May 13, 2022, or sooner.

India banned wheat exports on Saturday, days after announcing plans to ship 10 million tonnes of wheat this year, citing a blistering heat wave as a factor in lower wheat output and record-high local prices.

Previously, the government only allowed exports supported by letters of credit (LCs) or payment guarantees provided before May 13.

The provision has caused confusion. Traders stated they only had LCs for 400,000 tonnes of the 2.2 million tonnes of wheat at ports or in transit.

The move to limit wheat exports also stranded 1.8 million tonnes of grain in ports, putting traders at risk of losing money if they tried to sell it to the domestic market.

-      Reuters