DGFT issues Condition for Export of Wheat

The DGFT vide Trade Notice No. 06/2022-23 dated May 14, 2022, has issued certain conditions with respect to the export of wheat, for implementation of Notification No. 06/2015-2020 dated May 13, 2022, which prohibited the export of wheat under the Foreign Trade Policy, 2015-2020 (“FTP”). To ensure food security in the country, the government has announced prohibitions on wheat exports. However, under special conditions, the export of wheat items will be allowed. The present article briefs the Condition for the export of wheat.

The Gist of DGFT Trade Notice

India has banned wheat exports with immediate effect as part of measures to control rising domestic prices, according to a DGFT Notification No. 06/2015-2020 dated May 13, 2022

DGFT also announced that the export shipments for which irrevocable letters of credit (LoC) have been issued on or before the date of this notification will be allowed
The export policy of wheat is changed to prohibited from Free earlier with immediate effect
DGFT also clarified that wheat exports would be allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their governments.

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Amendment in Export Policy of Wheat - Notification No.06/2015-2020 dated May 13, 2022

As per the Notification No.06/2015-2020 dated May 13, 2022, DGFT has amended the Export Policy of Wheat under S.No.59 of Chapter 10 of Schedule – 2 of the ITC (HS) and placed their exports in the Prohibited category from Free earlier’ with immediate effect. Export of all wheat, including high-protein durum and normal soft bread varieties; has been moved from "free" to the "prohibited" category with effect from May 13, 2022

Conditions for Export of Wheat

DGFT also notified that the export of wheat shall be allowed under the following two conditions:

As a transitional arrangement, the export will be allowed in case of shipments where an Irrevocable Letter of Credit (ICLC) has been issued on or before the date of this Notification, subject to submission of documentary evidence as prescribed
The export will also be allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their governments.

Importance Announcement for RAs

The directorate general of foreign trade has directed its regional authorities to issue registration of contracts to the wheat exporters who have irrevocable letters of credit to honor their contracts. The direction came after the government banned wheat exports but allowed the overseas shipments for which irrevocable LoC (Letters of Credit) have been issued on or before May 13. All RA (Regional Authorities) under the DGFT are hereby directed to issue Registration of Contracts (RC) to the exporters of wheat, preferably within a prescribed time limit of 24 hours, on submission of application, complete in all respects, by the exporters