Government of India banned the export of wheat, decided on rising prices

The Government of India has banned the export of wheat with immediate effect. Its exports are now classified as ‘restricted’ goods. A major reason for this is the rise in the prices of wheat in the international market. The Directorate General of Foreign Trade and Finance (DGFT) announced the government’s decision by issuing an official […]
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Government of India banned the export of wheat, decided on rising prices


The Government of India has banned the export of wheat with immediate effect. Its exports are now classified as ‘restricted’ goods. A major reason for this is the rise in the prices of wheat in the international market.

The Directorate General of Foreign Trade and Finance (DGFT) announced the government’s decision by issuing an official notification on Friday evening. However, export orders for which a letter of credit has been issued before May 13 will be allowed to export.

The government has taken this decision keeping in mind the food prices in the country, ensuring food security and taking care of the needy developing and neighboring countries. The government has clarified in its order that export of wheat will be possible for countries for which the Government of India will give permission. On the request of the government of developing countries, the government will take a decision in this regard so that food security can be ensured there too.

“The Government of India is committed to provide food security to the country, neighboring countries and other developing countries,” the notification said. Especially in countries where sudden changes in wheat prices in the global market have had the opposite effect and are unable to ensure adequate supply of wheat.

The Russo-Ukrainian war has pushed up wheat prices in the global markets. Russia and Ukraine are major producers of wheat, and the war has disrupted supplies. In the international market, the prices of wheat have increased by about 40 percent. At the same time, wheat and flour have become expensive in the domestic market.

Inflation in wheat and flour category stood at 9.59 per cent in April from 7.77 per cent in March, while government procurement of wheat declined by around 55 per cent. The market price of wheat is currently higher than the MSP of the government. The government has fixed the MSP of wheat at Rs 2015 per quintal.