Following the May 13 ban order, the commerce ministry's arm, the Directorate General of Foreign Trade (DGFT), has issued registration certificates for approximately 1.6 million tonne of wheat to exporters with valid letters of credit, according to an official.
The government is allowing wheat shipments for which irrevocable letters of credit (L/C) were issued on or before May 13, when the foodgrain export ban was imposed in an effort to keep rising prices in check.
Because Russia and Ukraine are key players in the wheat sector, the war has had a significant impact on the flow of wheat in global markets. Russia and Ukraine account for nearly a quarter of the global wheat supply.
Exporters with valid L/Cs would be required to register with the Directorate General of Foreign Trade (DGFT) Regional Authorities in order to obtain registration of contracts (RCs) to ship their consignments.
"RCs for about 1.6 million tonnes have been issued so far," the official said, adding that because Russia has begun exporting wheat through Turkey, global market prices may stabilize.
In 2021-22, India's wheat exports were worth USD 2.05 billion due to increased demand for Indian wheat from overseas. In the previous fiscal year, approximately 50% of total wheat exports were shipped to Bangladesh.
Bangladesh, Nepal, the United Arab Emirates, Sri Lanka, Yemen, Afghanistan, Qatar, Indonesia, Oman, and Malaysia were the top ten importing countries for Indian wheat in 2020-21.
India accounts for less than 1% of global wheat exports. It is the world's second-largest wheat producer. In 2020, it was responsible for approximately 14% of global output.
India produces approximately 107.59 million tonnes of wheat per year, with the majority of it consumed domestically. Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan, Bihar, and Gujarat are the major wheat-growing states in India.
