Government will take strict motion towards exporters who’re making an attempt to ship or have shipped wheat by submitting back-dated and improper paperwork following the ban on exports of the crop, Commerce and Industry Minister Piyush Goyal mentioned on Friday.
On May 13, Government banned wheat exports to manage home costs. However, it allowed shipments for exporters who’ve legitimate irrevocable letters of credit score (LCs) issued on or earlier than May 13.
The Commerce Ministry has tightened the norms for acquiring registration certificates for wheat exports with a view to curbing fraudulent practices equivalent to submission of improper paperwork by merchants.
Exporters must submit the message alternate date with overseas banks together with a sound irrevocable letter of credit score, issued on or earlier than May 13, to acquire registration of contracts (RC) to ship their consignments.
“Some people have even tried to cheat by making back-dated applications and putting up LCs. The government will come down strongly on anybody who has tried to back date an LC; who has made an application to allow exports based on documents which are irregular in any form,” Mr Goyal advised reporters right here.
He added that the ministry is investigating exporters who’ve obtained authorisation to confirm if they’ve filed all the right paperwork.
“… strongest action will be taken on any exporter who has tried to game the system or who has tried to create back-dated LCs, back-dated applications. I want that message to be very clear,” he added.
The Directorate General of Foreign Trade (DGFT) has earlier acknowledged that it has obtained info from sources that fraudulent back-dated LCs, exhibiting date of issuance previous to May 13, 2022, are being submitted by some unscrupulous exporters for difficulty of RCs.
The minister additional mentioned an inter-ministerial committee, comprising officers from meals, agriculture and overseas affairs ministries, has been set as much as look at requests for wheat from neighbouring and pleasant nations.
The committee will be certain that the wheat sought by these nations are for their very own necessities.
“So whichever foreign government will apply, the committee will examine it. We are insisting that any country which wants wheat from us should ask only for their local population and commit that they will not allow it to be exported,” Mr Goyal mentioned.
“Our concern is that traders, speculators, and hoarders should not get control over the valuable wheat and charge exorbitant price from poor and vulnerable nations. We want to support to the extent that we can,” he added.
The commerce minister additionally mentioned the problem of promoting to a WTO (World Trade Organisation) member nation from public inventory holding will come up for dialogue on the ministerial convention (MC) this month in Geneva.