Bangladesh-bound 6,000 wheat trucks stranded at border

Pune: As many as 6,000 trucks carrying wheat to Bangladesh from India have been stranded on the border since May 14 for want of registration certificates (RC) from the Directorate General of Foreign Trade (DGFT).

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 rough estimates of traders and exporters, consignments of about 2,00,000-3,00,000 tonnes of wheat may be having genuine LCs.

Bimal Bengani, chairman (international trade) at the trade body, said: "There are about 1,200 applications from the eastern region submitted to the DGFT online for the registration certificate for export of wheat having letters of credit opened prior to May 13. Around 200 RCs were issued to several exporters till June 2, but many are still pending.”

He said many genuine exporters were suffering losses due to the delay in getting the RCs.

Bengani said the trade body had requested the government to allow consignments having import permits issued by the Bangladesh government prior to the date of the ban notification to cross the border. "If the government thinks that the LCs are allegedly ‘fraudulent’, they can approve LC issued after May 11 only after proper scrutiny. However, LCs issued on or before May 11 should be approved immediately to avoid further losses to exporters as already 23 days have passed," he added.

"The trucks are still waiting at various places like Hilli, Gojhadanga, Burimari and Mehandipur,” said Binod Agarwal, managing partner of SGR Indenting House.

Wheat exporter Rajesh Jain Paharia said: “It is not financially feasible to call back the stranded trucks nor do we have the option of selling the wheat in the local market. With the monsoon already here, we are also afraid about damage to wheat.”

BJP MP Sukanta Majumdar, in whose constituency falls the Hilli border, has requested commerce minister Piyush Goyal to allow the trucks which were stranded on the NH 512 to cross the border.

“After the completion of LC on May 12, the SWIFT transfer (of funds) could not take place as Friday and Saturday is a weekly holiday in Bangladesh and Sunday was also a holiday due to Buddha Purnima,” wrote Majumdar.