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Govt promises full support to wheat exporters as Ukraine-Russia war rages.
Mar 25, 2022
At a time when countries are competing to get a bigger share of Indian wheat as supplies from the Black Sea region become uncertain due to the Ukraine-Russia war, the government has announced full state support to the exporters to make the most of the opportunity to export the grain.
In a virtual meeting held on Thursday, union minister for commerce, industries and food Piyush Goyal assured exporters that the railways would provide better connectivity to the ports and ensure enough availability of railway rakes for wheat exports, said people who attended the meeting.
Madhya Pradesh chief minister Shivraj Singh Chauhan, who was present in the meeting, announced that wheat exporters would get reimbursement of the mandi tax they pay in the state on the exported wheat.
'We will make all the facilities available to the exporters through our export cell. We will also try to help exporters with space, grading, sorting, etc., which will help increase exports from the state and help its farmers,' said Chauhan
He also exporters could procure wheat from anywhere in the state using one licence.
The people ET spoke with said the central government had decided to open more ports for wheat shipment. 'India has also allowed trade in rupees instead of in dollars with Sri Lanka, which will help boost exports,' said one of the people who did not want to be named.
Bhavinkumar Shah, managing director of Pratik Agro Exports, a wheat exporter from Gujarat, said: 'The government has assured us every help that will be needed to maximise wheat exports from India.'
Indian exporters believe this unprecedented opportunity for Indian wheat may not remain just a short-term gap-filling opportunity, but pave the way to make India a long-term reliable supplier of food to the world.
Allana Group director Fauzn Alavi said: 'If India can match up to the quality and credibility of the product, we can have a long-term presence in the market, war or no war. India is in a positive position as we have a huge supply of wheat, have advantage of location and freight cost when compared to other origins like Australia or Canada. This will be a great opportunity for India to make a strong footprint all over the world.'
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