Government officials said a consignment of 56,000 tonnes of Indian durum wheat, which was returned by Egypt and Turkey, is currently at an Israeli port as it awaits news of its final destination.
However, officials denied that there was any link between the consignment’s rejection of the consignment and the current political uproar in West Asia over anti-Islamic remarks made by suspended Bharatiya Janata Party spokesperson Nupur Sharma.
The Indian government maintains that the consignment exported by ITC Ltd had fulfilled the quarantine requirements upon leaving India.
“The shipment of wheat was turned down by Turkey because the protein content of wheat was less than 13-14%, a major food safety regulation for Turkey and Egypt, which did not prepare any samples for testing,” the official said. Shipment was discontinued.”
“Usually the government is not involved in such situations as financial transactions were done and ITC was paid. But since it was Indian wheat, we are keeping a watch on it.”
The Mint previously reported that the shipment of wheat was sold to the Netherlands, but it was shipped to Turkey and then to Egypt. The two countries did not accept wheat amid reports that the consignment contained a non-plant-based virus.
The shipment left India before a ban on wheat exports was announced on May 13. The shipment could be valued in the millions as the international wheat price jumped sharply after the Russo-Ukraine war. According to the Ministry of Consumer Affairs, the price of wheat in the international market is around $450- 480 per tonne.
“The reason for the rejection was protein content, not phytosanitary issues,” said one of the officials. However, another official said that although India shares poor relations with some countries, international trade is stagnant on its own feet.
“Our relations with Saudi Arabia are not the best, but we buy oil. Political issues have nothing to do with business,” said another official.
When a shipment is rejected, there are usually three options – the exporter can destroy it, divert it or bring it back to the original source, an expert said, adding that destroying the shipment is usually But there is last option but it has happened in the past.
Moreover, wheat is not a perishable commodity and is often stored for months in India, the expert said.
Last week Commerce and Industry Minister Piyush Goyal said the government was investigating the reasons for Turkey’s rejection.
Queries sent to the spokespersons of the Ministry of Commerce and Industry, ITC and the embassies of Israel, Egypt and Turkey did not elicit any response till press time.
ITC says it had exported on FOB (Free On Board) terms to customers in the Netherlands and the cargo was loaded after being checked and cleared by buyer-designated surveyors as well as plant quarantine authorities.
FOB is a shipment term used to indicate whether the seller or buyer is liable for goods that are damaged or destroyed during shipping.
Experts said India’s agricultural exports have often been rejected because of phytosanitary issues. Earlier this year, Indonesia suspended Indian agricultural exports after quality issues were reported. Further, India failed to register laboratories that conduct food safety tests and issue certificates of analysis.