The Indian government has streamlined the payment process for traders bringing in pulses from Myanmar. Now, they are required to use the Rupee/Kyat direct payment system via the Special Rupee Vostro Account (SRVA) through Punjab National Bank. This new mechanism aims to make trade transactions smoother and more efficient.
According to a statement from the consumer affairs ministry on Saturday, the payment process for importing pulses from Myanmar has been made easier. Traders are instructed to utilize the Rupee/Kyat direct payment system using the SRVA through Punjab National Bank.
India heavily relies on pulse imports to address domestic shortages, particularly tur and urad dals from Myanmar.
Nidhi Khare, the Consumer Affairs Secretary, held discussions with the Indian Mission in Yangon regarding pulse imports from Myanmar. This included topics like import prices following revised exchange rates and the inventory held by importers in Myanmar.
The ministry highlighted that the Rupee/Kyat Settlement Mechanism has been in operation since January 25 this year, aiming to simplify trade transactions and enhance efficiency.
Guidelines for payment procedures under SRVA were released by the Central Bank of Myanmar on January 26, 2024.
The new mechanism, as informed by the Indian Mission, will apply to both sea and border trade, covering trade in goods and services.
The ministry's statement emphasized that the adoption of this mechanism by traders will reduce currency conversion costs and eliminate complexities associated with exchange rates, thereby eliminating the need for multiple currency conversions.
Efforts are underway to inform trading communities, especially pulses importers, about the operationalization of this mechanism. They are urged to use the Rupee/Kyat direct payment system via SRVA through Punjab National Bank.
Meanwhile, importers and other industry stakeholders, such as millers, stockists, and retailers, are required to honestly declare their pulse stocks, including imported yellow peas, on a weekly basis through the portal https://fcainfoweb.nic.in/psp/ starting from April 15.
The ministry also cautioned that engaging in forward trading of pulses would be met with strict consequences under various provisions of the Essential Commodities Act.
States and Union Territories are instructed to enforce weekly stock disclosure by all stockholding entities and verify the stocks declared by them.
Regular verification of stocks in warehouses at major ports and pulse industry hubs is mandated, with stringent action against entities providing false information on the stock disclosure portal.
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