Despite a general restriction
on wheat exports, the government has authorized the export of 2 lakh tonnes of
wheat to Nepal through National Cooperative Exports Limited (NCEL).
In order to facilitate production and trade,
the DGFT separately exempted SEZs, EOUs, and holders of advance authorization
from the $3.5/kg minimum import price (MIP) requirement on imports of synthetic
knitted fabric. A notice released recently states that the government has
approved the export of two lakh tons of wheat to Nepal. According to the
notification from the Directorate General of Foreign Trade (DGFT), the export
is allowed through National Cooperative Exports Limited (NCEL). NCEL is a business that was founded with
the help of cooperative societies.
While
wheat exports are prohibited to preserve local supplies, outbound shipments are
permitted when the government gives specific nations permission to do so in
order to meet their food security requirements and upon request. In a different announcement, DGFT stated
that imports of synthetic knitted fabrics by holders of advance authorization,
export-oriented units (EOUs), and special economic zones (SEZs) would not be
subject to the minimum import condition (MIP).
Synthetic
knitted materials are subject to a $3.5 per kg MIP in order to deter incoming
shipments of low-quality fabrics. Synthetic knitted cloth imports are
prohibited. However, if the CIF (cost, insurance, freight) value per kilogram
is $3.5 or more, importation is free. Additionally,
the MIP condition will not apply to inputs imported by SEZs, EOUs, or holders
of advance authorization.