India’s wheat export curb stalls 12 Bangladesh-bound loaded trains

Following the imposition of severe control on wheat export placed by the Indian government, as many as 12 trains carrying approximately 2,400 tonnes of wheat each in a total of 504 wagons have been stranded.

The loaded rakes that were headed towards Bangladesh have been stranded for the past several days, reports the Times of India.

 According to sources, the exporters who were responsible for these consignments are currently waiting for registration certificates (RC) from the regional authorities (RA) under the Directorate General of Foreign Trade (DGFT).

 The Indian railway ministry is currently combating the precarious situation of these stranded wagons which are also used to transport other essential commodities and items, including fertilizers.

 "Efforts are being made to expedite the process so that the trains can start running and we get back the empty wagons to carry other materials," said a source in the railway ministry.

 Indian government sources have also stated that the advising banks are verifying all Letters of Credit (LCs) to eliminate any possibility of fraud and after that, the RCs will be issued.

 The DGFT had issued guidelines to all RAs on 30 May, directing them for strict compliance before their issuance to the eligible exporters in order to avoid fraudulent practices.

 The guidelines also mention that the RAs are required to do a physical verification of all LCs, whether already approved or under process. During the physical verification, endorsements or validation of recipient banks may be ensured.

 The DGFT had requested the RAs for strict adherence to issuing RCs to qualify exporters shortly after the curb of free export of wheat on 13 May was announced. The instructions were issued after receiving information that unscrupulous exporters were submitting false back-dated LCs with dates issuance stated before or on 13 May for RCs.