[ad_1]
India is considering allowing traders to ship out some of their wheat sitting at ports after a sudden ban on exports of the grain prevented dealers from loading cargoes, trade and government sources said on Thursday.
New Delhi banned wheat exports on Saturday, as an intense heat wave hit output and domestic prices hit a record high.
The sudden ban on wheat exports trapped about 1.8 million tonnes of the grain at ports, potentially forcing traders to take heavy losses.
On Tuesday, the government allowed grain awaiting customs clearance to be shipped out. But traders are pressuring the government to further relax its ban.
The administration of Prime Minister Narendra Modi is looking into the demands of wheat traders, government sources familiar with the matter told Reuters.
“We will verify the merit of the demand and no genuine trader will be harassed,” said one of the sources who did not wish to be identified in line with official rules.
The government could ask for export data for the past few months to ascertain that they are bona fide dealers.
The government is aware that many genuine exporters are stuck because of the sudden ban, said a New Delhi-based dealer with a global trading firm.
“The government is trying to give concessions in a way that genuine exporters are protected,” said the dealer who declined to be named in line with his company’s policy.
The sudden ban has halted trading in many wholesale grain markets. Domestic wheat prices have dropped more than 4%.
Along with traders, transporters are also getting impatient, with their trucks waiting at ports to unload wheat.
“Piecemeal relaxations are not going to help and the government needs to resolve the issue in the next few days to avoid a chain of (payment) defaults,” said the New Delhi-based dealer.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link
