To control local prices, the government imposed restrictions on wheat exports

New Delhi . The central government has banned the export of wheat with immediate effect to control the local prices. Significantly, India is the second largest producer of wheat in the world. The government has said that export of wheat will be allowed under the letter of credit that has already been issued. Global buyers […]
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To control local prices, the government imposed restrictions on wheat exports

New Delhi . The central government has banned the export of wheat with immediate effect to control the local prices. Significantly, India is the second largest producer of wheat in the world. The government has said that export of wheat will be allowed under the letter of credit that has already been issued.

Global buyers were turning to India for wheat supplies following a fall in exports from the Black Sea region since Russia’s invasion of Ukraine in late February.

In order to manage the overall food security of the country and support the needs of neighboring and other vulnerable countries, the central government has banned the export of wheat with immediate effect, said a notification issued by the Indian commerce ministry.

Exports will be allowed to other countries on the basis of permission granted by the Government of India to meet their food security needs and on the basis of requests from the Governments. The Government of India is committed to meeting the food security needs of neighboring and other vulnerable developing countries, which are adversely affected by sudden changes in the global wheat market and unable to access adequate wheat supplies.

Due to the ongoing war between Russia and Ukraine, the international price of wheat has increased by about 40 percent. Due to this the export of wheat from India has increased. The increase in demand has led to a sharp rise in the prices of wheat and flour at the local level. The prices of food items have been increasing rapidly for a long time across the country, due to which the economic burden on the people is increasing.

The price of flour has increased by about 13 per cent as compared to last year. The all-India average retail price of wheat flour as on May 8, 2021 was Rs 29.14 per kg. The central government said that there has been a sudden increase in the global prices of many wheat, as a result of which the food security of India, neighboring and other vulnerable countries is at risk. Government procurement of wheat has declined by about 55 per cent this year as the price of wheat in the open market is much higher than the MSP. The minimum support price for wheat procurement is Rs 2,015 per quintal.