The government has said it will allow exports whose credit letters (LCs) have been issued before May 13 to continue. However, exporters say that about 10% of wheat exports go through ELCs, which means that a large number of traders’ contracted wheat cannot go abroad.
Exporters, who had contracts with local traders, refused to pick the grain, which is expected to lead to big trade lawsuits. The MP’s Indore Mandi traders had written a letter to Prime Minister Narendra Modi requesting permission to export all wheat stuck in transit before May 13 when the order was issued to ban wheat exports.
Traders in Ratlam Mandi have called for a halt to trading from May 17. “The government first tempted traders to export wheat, opened a special desk to facilitate exports and increased the mandi tax exemption. Now, it has suddenly left traders frustrated,” said a trader.
However, exports of wheat flour and value added FMCG products are now expected to increase.