Government of India bans wheat export
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The government of India bans wheat export
Recently, the Indian government has banned the export of wheat. The Ministry of Commerce and Industry has stated that the global prices of wheat have increased. As a result, the food security of India, and neighbouring countries is at risk.
What is wheat?
Wheat is a grass that is cultivated for its seed. It is a cereal grain which is the staple food all over the world.
Why is wheat export banned?
The current ban on the exports of wheat is important to ensure sufficient availability and to curb the high prices. To ensure food security, wheat exports are banned. Only under special conditions, the export will be allowed.
It is also stated that India is committed to providing food security requirements for India and neighbouring countries which are affected by the sudden price change for wheat. Currently, India is unable to access adequate wheat supplies.
India is looking to export 10 million tonnes of wheat in 2022-23. The exports had increased to 7 million tonnes worth around $2.05 billion in the financial year FY22 driven by strong demand.
Reasons for wheat ban
The heatwaves have affected the wheat crops in North-Western India. It has also triggered the wheat prices in the global market.
The government has made it a priority to control the price of wheat rather than to focus on the earnings of export.
The export of wheat is allowed under two conditions:
- The export will be allowed in case of shipments where an Irrevocable Letter of Credit (ICLC) has been issued.
- If the government of India grants permission to other countries to meet their food security needs, then the export of wheat will be allowed.
The Commerce Ministry has decided to send trade delegations to 9 countries to explore the possibilities of wheat export. The countries include Morocco, Tunisia, Indonesia, Philippines, Thailand, Vietnam, Turkey, Algeria and Lebanon.
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