DGFT News: DGFT directs regional authorities to issue RCs to wheat exporters.

The Department of Foreign Trade General has instructed its regional authorities to issue contract registrations to wheat exporters who have irresistible letters of credit so that they can honor their contracts. The directive came even after the government banned wheat exports to allow foreign shipments for which unchangeable LOCs (letters of credit) were issued on or before May 13.

The Directorate General of Foreign Trade (DGFT) is a branch of the Ministry of Commerce dealing with export and import matters.

Under the DGFT, all RA (Regional Authorities) have been directed to register the contract (RC) with the wheat exporters, especially within a specified time limit of 24 hours after submission of application, in all cases completed by the exporters. “, DGFT is a trade. Said in the notification.

It added that aid / assistance / export of wheat on humanitarian basis from government to government would be approved on a case-by-case basis with the specific approval of the competent authority.

Due to good demand for Indian wheat from abroad, India’s wheat exports in FY 2021-22 stood at an all-time high of 60 million tonnes, valued at USD 2.05 billion. Out of the total wheat exports, about 50 percent of the consignments were exported to Bangladesh in the last financial year.

So far in the current financial year, according to estimates, 4.3 million tonnes of wheat has been contracted for export.

Of this, 1.2 million tonnes has already been exported in April and May and another 1.1 million tonnes is expected to be sent, Commerce Secretary BVR Subramaniam said.

He said that if an exporter had “a valid order – an unchangeable letter of credit – that agreement would be respected. Thus, India’s credibility as a reliable supplier would be maintained”.