The Directorate-General of Foreign Trade (DGFT) has asked experienced exporters to apply for permits for the allocation of wheat export quota to Nepal by June 30. However, it has not specified how much quantity will be permitted. Wheat export has been banned since May 13, 2022, except with permission from the government to friendly countries and on humanitarian grounds.

The DGFT, in a trade notice June 20, said the government has approved the request received from Nepal which wanted to import wheat from India during 2023-24. It said that applications filed between June 21 and June 30 will only be considered for the permit.

While it said applications would have to be submitted through the online portal to maintain objectivity and transparency in the allocation of the quota, the DGFT also clarified that only those exporters who have exported wheat to Nepal during three years from 2019-20 to 2021-22 would be eligible to submit applications.

Minimum threshold

It said the minimum threshold will be 100 tonnes and application will be allowed only if the quantity to be exported is above that. The wheat is to be shipped to Nepal by land transport, DGFT said.

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Allocation of quota will be made on pro-rata basis on the average annual quantity shipped in the prescribed three years and the quantity sought to be exported, whichever is less, it said. Exporters who will be allocated the quota will have to submit the landing certificate within one month of completion of export quota, it said.

India had exported 4.7 million tonnes (mt) of wheat worth $ 1.52 billion during 2022-23 fiscal as the government had to allow shipments of those quantity for which contracts were signed before the ban was imposed. Out of this, 51,569 tonnes were shipped to Nepal. But in 2020-21, the export of wheat to the neighbouring country was 0.33 mt.

In April 2023, India had exported about 58,000 tonnes of wheat to all countries, including over 1,600 tonnes to Nepal.