The Hindu : Wheat export grinds to a halt

Online edition of India's National Newspaper
Friday, Nov 15, 2002

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Wheat export grinds to a halt

By Our Special Correspondent

NEW DELHI Nov. 14. Non-availability of railway wagons for exporting wheat over the last fortnight has not only threatened the viability of wheat exporters but also brought over a few lakh tonnes of export to a virtual standstill.

Voicing the exporters' concern over the development, Anil Aggarwal, chairman of the ASSOCHAM Expert Committee on Foreign Trade, has asked the Government to come to the rescue of the exporters by taking necessary remedial measures.

Addressed to the Ministry of Consumer Affairs, Food and Public Distribution, the SOS blamed the sudden shift in the Government policy on wagon allotment for the crisis. It said that a large number of exporters were paying as demurrage $ 5000 a day per vessel stationed at ports for loading.

The Food Corporation of India had unilaterally taken the decision of discontinuing the policy of according rakes for export purposes, Mr. Aggarwal said, adding that the FCI should give 10 additional days for the dispatch of goods where release orders had been issued prior to October 31 and wheat could not be dispatched due to the non-availability of railway rakes.

It has been suggested that the stipulations related to the purchase of wheat and rice from the FCI such as submission of a bank guarantee for the difference in the FCI's sale price and open market price be removed. Only public sector undertakings and cooperatives are now exempted from submitting this guarantee, and, therefore, the reputed exporters holding the status of Export House, Trading House and above, recognised by the DGFT and the Commerce Ministry, should also be allowed to purchase FCI wheat and rice by submitting a legal undertaking as in the case of PSUs and cooperatives.

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