India Allows Wheat Export Quota to Nepal, Experienced Exporters Encouraged to Apply

The Directorate-General of Foreign Trade (DGFT) has announced that experienced exporters are invited to apply for permits for the allocation of a wheat export quota to Nepal. The deadline for applications is June 30, 2023. However, the specific quantity of wheat to be permitted has not been specified.

Since May 13, 2022, wheat export has been banned, except with permission from the government for friendly countries and on humanitarian grounds. In response to a request from Nepal to import wheat from India during the 2023-24 period, the Indian government has approved the allocation.

According to the trade notice issued by the DGFT on June 20, applications filed between June 21 and June 30 will be considered for the permit. Applicants must submit their applications through the online portal to ensure objectivity and transparency in the quota allocation process. The DGFT has clarified that only exporters who have previously exported wheat to Nepal from 2019-20 to 2021-22 will be eligible to submit applications.

The minimum threshold for application eligibility has been set at 100 tonnes. Applications will only be accepted if the quantity to be exported exceeds this minimum threshold. The wheat will be transported to Nepal via land transport, as specified by the DGFT.

The allocation of the export quota will be made on a pro-rata basis, considering the average annual quantity shipped during the prescribed three years and the quantity requested for export, whichever is lower. Exporters who are allocated the quota will be required to submit the landing certificate within one month of completing the export quota.

In the previous fiscal year of 2022-23, India exported 4.7 million tonnes of wheat valued at $1.52 billion, as the government permitted shipments for which contracts were signed prior to the imposition of the ban. Out of this quantity, 51,569 tonnes were shipped to Nepal. However, in 2020-21, the export of wheat to Nepal was only 0.33 million tonnes.

The call for experienced exporters to apply for the wheat export quota highlights India's efforts to support trade relations with Nepal and ensure the availability of essential commodities in the neighbouring country.