India bans wheat export with immediate effect to control price rise

India has banned wheat exports with immediate effect as part of its steps to control the spike in prices at home.
 
wheat export

NewDelhi: India has banned wheat exports with immediate effect as part of its steps to control the price rise at home. Only export shipments for which letters of credit (LoC) have been issued on or before yesterday's notification will be allowed, the government said.

Meanwhile, the government will allow wheat exports on requests from other nations, the notification issued by the Directorate General of Foreign Trade (DGFT) said.

 

Flour (aata) price crossed Rs 33 per kg in the country

Due to the rising cost of wheat, flour (aata) is becoming costlier in the retail market. The average price of flour in the retail market has reached around Rs 33-34 per kg. In comparison with the last year, flour has become costlier by about 13%. Last year on May 13, flour was available at Rs 29-30 per kg.

 

Read more: India's wheat export: feed, need or greed?

Wheat production expected to decline

Wheat prices are expected to rise further in the coming days. Wheat production is expected to decline in the 2021-22 rabi season. The government itself has reduced the production estimate. With the onset of the summer season early this year, the government has reduced the production estimate to 105 million tonnes (105 million tonnes) from 111.32 million tonnes.

India is exporting wheat to 69 countries

Prior to this ban, Commerce Minister Piyush Goyal had told that wheat exports can cross 100 to 125 lakh tonnes in the current financial year. This time Egypt has a new name in the wheat buyer countries. India is currently exporting wheat to 69 countries. In the financial year 2021-22, India exported 78.5 lakh tonnes of wheat to 69 countries.

Congress termed this move as anti-farmer

Terming the government's move to ban wheat exports as "anti-farmer", the Congress claimed that the government did not procure enough wheat, leading to a situation where it had to ban exports. Senior party leader and former FM P Chidambaram told reporters that I believe that the central government has failed to buy enough wheat and ultimately it will hurt Indian farmers.

However, the Agriculture experts had a different view on this, Devender Sharma, an Agri expert said that this is a good step by the Centre to ban wheat exports, ‘when prices are rising and govt is already distributing free wheat from its pool under PDS’. We need to check our stocks before exporting, amid rising inflation in the country.

Read more: Indian consumer saving more after the corona pandemic: EY report