Government permits export of 2 lakh tonnes of wheat to Nepal

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.