India banned exports of wheat on May 13 to cool the food grain’s local prices, but later allowed shipments where banks had already opened letters of credit (LCs) before the ban was announced. But exports still need DGFT’s clearance, which is taking time as authorities are trying to ensure that exporters didn’t back-date the LCs.
Trade sources said the trucks waiting on the Bangladesh border mostly belonged to small traders, unlike at the Kandla port where large quantities of wheat belonging to a few big companies and traders had been stranded.
According to the Confederation of West Bengal Trade Associations, there are about 6,000 trucks, 10-12 railway rakes and 10-12 barges/vessels stranded at the Kolkata port. According to estimates of traders and exporters, consignments of about 2,00,000-3,00,000 tonnes may be having genuine LCs.