India bans exports of Wheat: The Government of India has banned the export of wheat with immediate effect. On Friday night, the central government shared this information. The government took the decision saying that local prices should be kept under control, so exports are being banned. Let us tell you, India is the second largest wheat producing country in the world.
Giving information, the central government said that at this time it will only allow export shipments for which letters have been issued on or before Friday. Apart from this, the government will also allow exports on the request of other countries.
Let us understand in some points why and for what reason the Government of India took this decision…
Rising food and energy prices pushed India’s annual retail inflation to an eight-year high of 7.79 percent in April. Due to rising inflation, wheat prices in India have reached record levels. In some markets, it has reached Rs 25,000 per tonne, which is much higher than the government’s minimum support price of Rs 20,150.
The government said the move was done to “manage the country’s overall food security and support the needs of neighboring and other vulnerable countries”.
The Government of India is committed to providing for the food security needs of neighboring and other vulnerable developing countries, which are adversely affected by sudden changes in the global wheat market and are unable to access adequate wheat supplies.
The government said 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. Due to the ongoing war between Russia and Ukraine, the international price of wheat has increased by about 40 percent. Due to this its export from India has increased. Due to increase in demand, there has been a huge increase in the price of wheat and flour at the local level.
The minimum support price for wheat procurement is Rs 2,015 per quintal. Retail inflation of wheat and flour in the country increased to 9.59% in April from 7.77% in March. This year the government procurement of wheat has come down by about 55% as the price of wheat in the open market is much higher than the MSP.
What will be the impact of India’s ban on global grain rates?
Russia and Ukraine are the world’s two largest wheat suppliers. The war interrupted the production of wheat while the blockades in the Black Sea impeded the transport of grain. In addition, poor harvest in China, scorching heat in India and drought in other countries further affected the global grain supply. India is the second largest producer of wheat in the world. Global buyers were banking on wheat supplies from India to help make up for the global supply shortfall which has been hit hard by the Russo-Ukraine war. India had set a target of exporting a record 10 million tonnes of wheat this year. India’s ban can take global prices to a new level.
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