The government has sanctioned the export of 2 lakh tonnes of wheat to Nepal through the National Cooperative Exports Limited (NCEL), despite a general ban on wheat exports. This decision aims to support Nepal’s food security needs while adhering to India’s export control policies.
A notification issued by the Directorate General of Foreign Trade (DGFT) confirmed this authorization, emphasizing that NCEL, a business established with the assistance of cooperative societies, will handle the exports. The move aligns with India’s policy of permitting limited wheat exports to specific nations under exceptional circumstances, particularly when such nations require support to address food security concerns.
Exemptions for Synthetic Fabric Imports
In a separate development, the DGFT announced significant changes to the minimum import price (MIP) requirement on synthetic knitted fabric imports. Special economic zones (SEZs), export-oriented units (EOUs), and holders of advance authorization will now be exempt from the $3.5 per kilogram MIP condition.
The MIP policy for synthetic knitted fabrics was introduced to restrict the inflow of substandard materials. Under normal circumstances, imports are only allowed if the CIF (cost, insurance, and freight) value per kilogram meets or exceeds the $3.5 threshold. However, the latest exemption allows designated entities to import synthetic knitted fabrics without adhering to this restriction. This change is expected to facilitate trade and bolster production in these sectors.
Balancing Domestic and International Needs
While maintaining a broad restriction on wheat exports to safeguard domestic supplies, the government periodically authorizes exports to meet the critical needs of neighboring countries. Similarly, by easing fabric import conditions for SEZs, EOUs, and advance authorization holders, the government is seeking to support manufacturing activities and trade competitiveness.
These policy adjustments reflect India’s strategic approach to balancing domestic supply concerns with international commitments and the operational needs of export-oriented industries.
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