itc: Suppliers cancel ITC, Kargil wheat purchase agreement

And exporters like Cargill have started canceling wheat procurement contracts with local traders after the ban on overseas sale of food grains, leaving them in trouble due to lack of capacity of suppliers.

ITC, the country’s largest wheat exporter, has called for Force Magio. “The Government of India has immediately banned the export of wheat … This has led to a coercive incident. As a result, all our balance sheets with you have been immediately canceled,” ITC said in an email to suppliers that ET had seen. “The wheat purchase agreement entered into between you and ITC for delivery at the port location was for export from India.”

Cargill has told wheat suppliers that it will accept loaded deliveries by May 14. No wheat company will accept loads after this.

Lurch

“Since the MNCs have started sending out order cancellation notices, it seems there is no hope now that the government will allow further relaxation in the May 13 export ban notification,” said a Madhya Pradesh-based businessman who did not want to be identified. Because our case cannot stand in the court of law, where the government is only concerned with farmers and consumers. ”

‘Government collection stopped’

India imposed the ban after domestic wheat and flour prices rose and heatwaves were expected to affect crops. Gopaldas Agarwal, a veteran grain trader from Indore, said, “The government has stopped buying in many places due to poor response from farmers who were getting good prices in the market.”

“Now, since the export ban, the open market and APMC (Agricultural Produce Market Committee) rates in Indore market have come down from 12% to 13% because there is no buyer for wheat in the open trade … there is no official collection that all traders sell wheat to big companies They are struggling to unload wheat at Kandla port. ”

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