COMMODITY
DGFT issues RCs for 1.6 million tonne wheat export after ban order of May 13
Jul-04-2022

The commerce ministry's arm -- the Directorate General of Foreign Trade (DGFT) has issued registration certificates (RCs) for about 1.6 million tonne of wheat to exporters having valid letter of credit, after the ban order of May 13. The government is allowing wheat shipments for which irrevocable letters of credit (L/C) were issued on or before May 13, when the ban on the export of the foodgrain was imposed with an aim to contain rising prices.

India's wheat exports stood at 7 million tonne, valued at $2.05 billion, in 2021-22 on better demand for the Indian wheat from overseas. Of the total wheat exports, around 50 per cent of shipments were exported to Bangladesh in last fiscal year. The top ten importing countries for the Indian wheat in 2020-21 were Bangladesh, Nepal, the United Arab Emirates, Sri Lanka, Yemen, Afghanistan, Qatar, Indonesia, Oman and Malaysia.

India accounts for less than 1 per cent of the world wheat export. It is the second-largest producer of wheat. It had contributed around 14 per cent of the world's total production in 2020. India produces around 107.59 million tonne of wheat annually, while a major chunk of it goes towards domestic consumption. Major wheat growing states in India are Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan, Bihar and Gujarat.

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