The Director-General of Foreign Trade (DGFT) has decided to relax some foreign trade policy (FTP) provisions to assist importers in bringing in their moong cargoes contracted before February 11, potentially providing relief to a segment of the pulses trade.
The Centre changed the moong import policy from "free" to "restricted" last month, which surprised importers.
Following representation from various entities, the DGFT has decided to relax the FTP provision in order to allow importers to ship in moong for fiscal 2021-22, subject to certain conditions. The amount eligible for import would be proportionate to the amount paid as advance prior to February 11, 2022.
If the advance payment for the entire contracted quantity had been made in full, then the eligibility would be for the entire contracted quantity. "If a partial payment is made, the quantity admissible for import shall be limited to the amount in proportion to the advance payments made," the DGFT stated in a trade notice issued on Monday.
According to DGFT, the import contracts should have been signed and payments made before February 11th. Contract details must be registered by March 15 at additional DGFT jurisdictional regional offices in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, and Ludhiana.
Following the change in moong bean import policy earlier this month, trade sources indicated that cargoes of up to 50,000 tonnes were being prepared for shipment to India by March 31 from origins such as Myanmar.
India's moong imports were valued at $76.9 million during the April-September period of the current fiscal year, compared to $77.14 million for the entire fiscal year 2020-21.
According to the Second Advance Estimates, moong production in India is expected to be 3.06 million tonnes in 2021-22, with 2 million tonnes in the Kharif season and 1.06 million tonnes in the rabi season.
About DGFT:
The Directorate General of Foreign Trade is appointed by the Central Government. Normally, a member of the Indian Administrative Service with 30 years of service or more is appointed to the position of Director-General of Foreign Trade.
The Director-General is in charge of an attached office that reports to the Government of India's Ministry of Commerce and Industry. The Director-General serves as the Government of India's Ex-Officio Additional Secretary.
The Director-General advises the central government on foreign trade policy formulation and is in charge of implementing that policy. Currently, the Director-General develops Foreign Trade Policy, the Hand Book of Foreign Trade Procedures, and ITC (HS) Classifications of Import and Export Items.
