India imposes ban on wheat exports with immediate effect to control rising prices in country
India imposes ban on wheat exports with immediate effect to control rising prices in country

India imposes ban on wheat exports with immediate effect to control rising prices in country

The central government has banned the export of all wheat from the country. The decision comes a day after annual consumer price inflation hit an eight-year high of 7.79 percent in April. In addition, retail food inflation has risen to 8.38 percent.

In a new order, the export of all wheat, including high protein durum and normal soft bread varieties, has been shifted from ‘free’ to ‘prohibited’ category with effect from May 13. The commerce department notification said that from now, only two types of shipments will be allowed.

The first is on the basis of permission granted by the Government of India to other countries to meet their food security needs, and on the basis of requests from their governments.

Second are the exports under transitional arrangements where an irrevocable credit note has been issued on or before the date of this notification, subject to production of such documentary evidence as prescribed.

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Drop in Purchases

It is said that the government procurement of wheat is decreasing. There is a possibility that procurement of wheat by government agencies will come down to a 15-year low this time from the highest so far last year in the current marketing season. This time around 18.5 million tonnes (MT) will likely be procured.

This figure will be the lowest since the procurement of 11.1 million tonnes in 2007-08. Farmers mostly sell from April to mid-May, although government wheat procurement technically extends until June and the marketing season until the following March.

Moreover, this will be the first time that wheat procured from the new crop (18.5 million tonnes) is less than the public stock at the start of the marketing season (19 million). Fresh purchases have always been higher than the opening balance stock.

This was also the case during the last two low procurement years of 2006-2007 and 2007-2008. This year will be an exception and in stark contrast to 2021-22, which saw unprecedented levels of both opening stock (27.3 million tonnes) and procurement (43.3 million tonnes).

There are two main reasons why procurement has dropped to a 15-year low this time around. These are export demand and low production.

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The post India imposes ban on wheat exports with immediate effect to control rising prices in country appeared first on APN News.

The central government has banned the export of all wheat from the country. The decision comes a day after annual consumer price inflation hit an eight-year high of 7.79 percent in April.

The post India imposes ban on wheat exports with immediate effect to control rising prices in country appeared first on APN News.

Published on : May 15, 2022 at 10:15 AM

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