‘Take steps to import wheat against LCs opened before India’s ban’

The country’s businessmen have urged the government to take steps to import wheat against letters of credit (LCs) opened before India imposed a ban on its exports in May.

An initiative should be taken to request the Indian government to export wheat within the stipulated time against the LCs (letter of credit) opened before the neighbouring country banned the export of the crop in May last, said Chittagong Chamber of Commerce & Industry (CCCI) President Mahbubul Alam in a letter sent to Tapan Kanti Ghosh, senior secretary to the commerce ministry, on November 12.

“India has stopped the export of wheat. Indian traders are not supplying wheat under the agreement of LCs which were opened before their government stopped its export. In this situation, we urge the government to make a recommendation to the Indian commerce ministry to allow wheat export under the old LCs,” the CCCI president said in the letter on behalf of the businessmen.

He said, “Several CCCI members and importers of Khatunganj, the country’s biggest wholesale market for consumer goods, have informed us through letters that various reputed exporters of India are not supplying wheat even though LCs had been opened for importing wheat from them.”

“In this context, we request the commerce ministry to take necessary measures to recommend the Indian commerce ministry to allow wheat exports within the stipulated time mentioned in those LCs,” the letter stated.

“India banned wheat export in May last due to a global food crisis caused by the Russia-Ukraine war. Consequently, the supply of wheat from India, under the LCs already opened before the ban, also stopped. As a result, the price of flour in the market of the country is increasing day by day,” the letter said.

Mentioning that the wheat shipment period of the LCs issued in March this year is up to December, the letter said, “While imposing the ban, the Directorate General of Foreign Trade under the commerce ministry of India said that LCs issued before the ban would be considered. But, the Indian exporters stopped supplying the wheat due to various problems there.”

If the issue is resolved quickly, it will play a very effective role in maintaining the uninterrupted and stable supply of flour in the market, the letter stated.

Contacted, Commerce Secretary Tapan Kanti Ghosh said, “We have not yet discussed the issue with private sector wheat importers. We will sit with them soon. But we are considering wheat imports from other countries.”

“We will take initiative to import wheat from India under the LCs opened before the ban. However, we need to know how much wheat an importer has contracted to import. Then we will be able to write to the Indian Embassy through the foreign affairs ministry,” he said in reply to a query.