Procedure for Quota Allocation and Export of Wheat on Humanitarian and Food Security Grounds

The Directorate General of Foreign Trade (DGFT) has recently issued a trade notice marking the revised export policy for wheat.

Background:

On May 13, 2022, the Government of India through Notification No.06/2015-2020 subjected the export policy of wheat to “Prohibited” with regards to the same, they also mentioned the exports will be allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their government.

With regards to the same, the requests received from the Government of Nepal has been approved and the application for export of wheat to the country is invited. To ensure objectivity and transparency, the allocation process has been defined in the trade notice as below:

The mode of allocation:

• Application Submission: Exporters need to submit their applications through an online portal.
• Eligibility: Only exporters who have previously exported wheat to Nepal within three years preceding the fiscal year in which wheat was prohibited are eligible to apply.
• Minimum Threshold: Allocation will be made with a minimum threshold of 100 MT by land transport. Exporters must apply for a quantity greater than the minimum threshold to be considered.
• Pro-rata Allocation: Quota allocation will be based on the pro-rata average export of wheat to Nepal during the three years preceding the fiscal year in which wheat was prohibited or the quantity applied for, whichever is lower, subject to the minimum threshold.
• Reallocation: Any unutilized quantity will be reallocated on a pro-rata basis to eligible exporters.

Application Process for Export Authorization:

Exporters who have been allocated the quota of wheat need to follow the outlined procedure for export authorization:

• Online Application: Exporters must apply online through DGFT’s ECOM system for Export Authorizations Non-SCOMET Restricted Items. Hard copies of the application should not be sent via mail or post.
• Validity: The validity of the Export Authorization will extend until March 31, 2024.
• Application Period: Only online applications filed between June 21, 2023, and June 30, 2023, will be considered.

• Required Documents: Exporters must submit export data for the three years preceding the fiscal year in which wheat was prohibited along with their application.