The Directorate General of Foreign Trade has directed all regional authorities to physically verify all documents of applicants for export of wheat before issuing registration certificates (RCs).
The order has been issued to ensure that the exporters are not issued certificates based on improper documents.
“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. Wherever necessary, help of a professional agency may be taken for such verification,” an official statement said on Tuesday.
The Centre had on May 13 restricted wheat exports to manage the “overall food security” situation in the country and to support the needs of neighbouring and vulnerable nations adversely affected by the sudden changes in the global market for wheat and are unable to access adequate wheat supplies.
The move to restrict export of wheat came close on heels of rising wheat prices in domestic markets and in all other major producing countries due to supply imbalance after Russian launched its ongoing invasion of Ukraine on February 24.
Both the countries involved in the military action are two major producers and exporters of the staple foodgrain.
Then came the heat wave in major wheat growing regions in India.
Reports suggest that the early onset of summer followed by severe heat waves in key wheat growing regions is likely to reduce crop yields as excessive heat typically shrivels grain pods in the maturity stage.
The current wheat price in India, at around Rs 2,300-2,400 per 100 kg, is well above the Centre’s assured Minimum Support Price (MSP), which in itself is a rare phenomenon.
The MSP for wheat for 2022-23 marketing season was fixed at Rs 2,015 per 100 kg.
It is important to note that prices of wheat remain on the lower side during this time of the year as freshly harvested rabi crops make their way into the physical markets or mandis.