Central government imposed immediate ban on export of wheat, decision after rising prices in the world
The Government of India has banned the export of wheat with immediate effect. Its export has now been put in the category of ‘restricted’ goods. A major reason for this is the increase in the prices of wheat in the international market. The Directorate General of Foreign Trade (DGFT) issued an official notification on Friday evening and informed about this decision of the government. However, export orders for which Letter of Credit has been issued before May 13, will be allowed to be exported.
Taking care of neighboring and needy countries
The government has also taken this decision keeping food prices under control in the country, ensuring food security and taking care of the needy developing and neighboring countries (especially in view of the Sri Lanka crisis).
The government has made it clear in its order that the export of wheat will be possible for those countries, for which the Government of India will give permission. In this regard, the government will take a decision on the basis of the request of the government of the needy developing countries so that food security can be ensured there too.
The notification said, ‘The Government of India is committed to providing food security to the country, neighboring countries and other developing countries. Especially those countries where this sudden change in the prices of wheat in the global market has had the opposite effect and they are unable to ensure adequate supply of wheat.
Wheat prices rising everywhere
Due to the Russo-Ukraine war, wheat prices have increased wildly in the global markets. Russia and Ukraine are major wheat producers and the war has disrupted supplies from these countries. The prices of wheat in the international market have increased by about 40%. At the same time, wheat and flour have also become expensive in the domestic market.
If we look at the government’s retail inflation data, the inflation rate of wheat and flour category in April has been 9.59%. This is higher than March’s rate of 7.77%. While there has been a decline of about 55% in the government procurement of wheat, because the market price of wheat is currently higher than the government’s Minimum Support Price (MSP). The government has fixed the MSP of wheat at Rs 2,015 per quintal.