https://sputnikglobe.com/20220531/india-plugs-loopholes-in-wheat-export-ban-prompting-western-outcry-1095893529.html
India Plugs Loopholes in Wheat Export Ban Prompting Western Outcry
India Plugs Loopholes in Wheat Export Ban Prompting Western Outcry
Sputnik International
New Delhi has restricted wheat exports in order to manage the country's food security situation amid a global shortage of grains. 31.05.2022, Sputnik International
2022-05-31T11:24+0000
2022-05-31T11:24+0000
2023-04-12T17:14+0000
wheat
us
exports
piyush goyal
narendra modi
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India’s Ministry of Commerce has warned wheat exporters that they may face investigation and punitive measures should they be caught exploiting loopholes in a recent wheat export ban.The news came as authorities looked to clamp down on wheat traders illegally using back-dated or forged letters of credit to receive export permits. Letters of credit are issued by the banks to confirm payment for goods. The wheat export ban allows exports where payment was received on or before 13 May.As part of efforts to enforce the ban, the government has directed local officials to verify all documents submitted before issuing permits."In order to plug the loophole, it has been decided that regional authorities will do a physical verification of all letters of credit, whether already approved or under process," the order explained.Equally, investigative proceedings may be opened, with bankers also at risk.India has permitted 1.5 million tonnes of wheat exports with valid letters of credit after the 13 May ban came into effect. The country has received requests for an additional 1.5 million tonnes of wheat from countries such as Bangladesh, Egypt, and Guyana, which face grain shortages, Reuters reported on Monday.The European Union and the US have criticised New Delhi for imposing restrictions on wheat exports, claiming that the decision could aggravate the global food crisis.However, the Indian government has maintained its position, publishing data on the country's minute share in the global wheat market of less than one percent. Russia and Ukraine are the largest global producers of wheat, together supplying over a quarter of global demand prior to the ongoing crisis in Europe.
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wheat, us, exports, piyush goyal, narendra modi, g7, germany, ukraine, food crisis, world food programme (wfp), european union (eu)
wheat, us, exports, piyush goyal, narendra modi, g7, germany, ukraine, food crisis, world food programme (wfp), european union (eu)
India Plugs Loopholes in Wheat Export Ban Prompting Western Outcry
11:24 GMT 31.05.2022 (Updated: 17:14 GMT 12.04.2023) New Delhi has restricted wheat exports in order to manage the country's food security situation amid a global shortage of grains.
India’s Ministry of Commerce has warned wheat exporters that they may face investigation and punitive measures should they be caught exploiting loopholes in a recent wheat export ban.
The news came as authorities looked to clamp down on wheat traders illegally using back-dated or forged
letters of credit to receive export permits. Letters of credit are issued by the banks to confirm payment for goods. The wheat export ban allows exports where payment was received on or before 13 May.
As part of efforts to enforce the ban, the government has directed local officials to verify all documents submitted before issuing permits.
"In order to plug the loophole, it has been decided that regional authorities will do a physical verification of all letters of credit, whether already approved or under process," the order explained.
Equally, investigative proceedings may be opened, with bankers also at risk.
"Such cases [may] be further examined for referring to enforcement agencies like the Economic Offence Wing [or] Central Bureau of Investigation (CBI). In case of complicity of any banker (…) where ante-dating is established, necessary proceedings as per the law will be initiated," the ministry's order warns.
India has permitted 1.5 million tonnes of wheat exports with valid letters of credit after the 13 May ban came into effect. The country has received requests for an additional 1.5 million tonnes of wheat from countries such as Bangladesh, Egypt, and Guyana, which face grain shortages, Reuters reported on Monday.
The European Union and the US have criticised New Delhi for imposing restrictions on wheat exports, claiming that the decision could aggravate the global food crisis.
However, the Indian government has maintained its position, publishing data on the country's minute share in the global wheat market of less than one percent. Russia and Ukraine are the largest global producers of wheat, together supplying over a quarter of global demand prior to the ongoing crisis in Europe.
