India on Friday allowed wheat flour (atta) export on the condition that it has to be processed from imported wheat under Advance Authorisation Scheme by 100 per cent export oriented units (EOUs) or factories located in special economic zone (SEZ). It has also rolled out procedures for seeking quota to export broken rice within the cap fixed earlier.
In a notification on allowing flour export, the Directorate General of Foreign Trade said as wheat or meslin flour (atta), maida, semolina rava (sirgi), wholemeal atta and resultant atta have been prohibited from export, “however, export of wheat flour (atta) will be allowed against advance authorisation, and by EOUs and units in SEZs.”
Riders for import
The DGFT notification further said the export of atta by these units will be subject to pre-import of wheat conditions. The atta will have to be exported within 180 days from the date of import of the wheat consignment. The import will be subject to actual user condition and transfer of raw material for any purpose including job work, shall not be permitted, the notice said.
The government has also said procurement of domestic wheat for the purpose of export of atta will not be allowed. It also has stipulated that exporters need to show to the Customs the Bill of Entry for imported wheat at the time of export of atta. Further, entire production of the milling process has to be exported, DGFT said.
“Allowing import of wheat to export flour is very good for India and in line with the policy of opening up the gateway for Make In India vision,” said an expert.
In a separate notification, DGFT said online applications to export broken rice between October 16 and October 20 will only be considered for issuing the permits. Exporters need to file a separate application for each of the valid LCs opened before September 8, when the government banned the shipment of broken rice. On October 12, the DGFT announced that 3.97 lakh tonnes (lt) of fully broken rice would be allowed for exports till the end of the current fiscal.