New Delhi: The central government has permitted wheat shipments of 469,202 tonnes after banning exports last month, a report by Reuters said. However, around 1.7 million tonnes of wheat is lying at ports and could be damaged by looming monsoon rains, government and industry officials said.
A senior government official, who also stated the total quantity, said that shipments that have been allowed moved mainly to Bangladesh, the Philippines, Tanzania, and Malaysia.
The ban pulled Indian wheat exports down to 1.13 million tonnes in May from a record 1.46 million tonnes in April, the official added.
India, the world's second-biggest wheat producer, imposed a general ban on exports on May 14 as a scorching heat wave curtailed output and pushed domestic prices to record highs. Exceptions were allowed for shipments backed by letters of credit that had already been issued and those to countries that requested supplies to meet their food security needs.
But even after the departure of some wheat, at least 1.7 million tonnes remained piled up at various ports, three dealers with global trading firms told Reuters.
Before the ban, exporters moved unusually large quantities to ports, because the crop was then expected to be strong and the government was encouraging them to replace Black Sea supply lost because of the war in Ukraine. They expected New Delhi to authorise shipments this year of 8 million to 10 million tonnes or even more, compared with 7.2 million tonnes last year.
"Kandla and Mundra ports have maximum wheat stocks," said a Mumbai-based dealer with a global trading firm. "Together they are holding more than 1.3 million tonnes."
The government needed to issue export permits promptly, because wheat at the ports was in loose form and therefore vulnerable to monsoon rains, said a New Delhi based dealer with a global trading company.get damaged by rains, then it will not serve any purpose," the dealer said.