Before I sign a deal with a buyer, how do I make sure my crop is actually allowed for export and not under a ban or duty.
3 जवाब
Always check the current export policy before promising any quantity to a buyer, because India can change the rule for an item overnight. Export status is decided by DGFT and falls into categories: free (no restriction), restricted (needs a licence or authorisation), prohibited (banned), or subject to conditions like a minimum export price (MEP), an export duty, or a quota. Agricultural items like onion, certain rice, wheat and sugar have at times been put under bans, MEP or duty to control domestic prices. To check, look up your product's HS code in the ITC-HS export schedule and read the latest DGFT notifications and trade notices on the official DGFT portal, and confirm with your CHA. Put a clause in your buyer contract covering what happens if the government changes the policy, so a sudden ban does not leave you exposed. Never assume last year's rule still applies.
This is real. Onion export went from free to banned and back more than once. We now check the DGFT notification before every contract and keep a force majeure clause.
Ask your CHA, they track the DGFT notices daily. A friend got stuck with packed stock when a duty was announced mid-deal.