NEW DELHI: Amid concerns of lower-than-expected production, the government on Saturday announced a total ban on wheat export with immediate effect. It drew stinging criticism from the G7 nations, which said the global food situation would worsen if each country starts imposing export restrictions.
Justifying its decision, the Ministry of Commerce and Industry said it is prohibiting exports of wheat “in order to manage the overall food security of the country and to support the needs of the neighbouring and other vulnerable countries”.
But exports will be permitted on special requests from countries facing food security challenges. Also, exports will be allowed of shipments where a Letter of Credit (LoC) has been issued on or before the export ban. Commerce secretary B V R Subramanian said the decision also comes in the wake of rising inflationary pressure in the country. India exported 7.2 million tonne (MT) wheat in 2021- 22.
According to the commerce secretary, the country has contracted 4.5 MT exports so far in 2022-23 of which 1.46 million tonnes has been exported in April itself.
Wheat production is likely to fall due to early heat adversely affecting the crops. The production is likely to be around 105 MT in 2022-23, down from the earlier estimate of 111 MT.
DIVERTING TRADE
“It is a balanced order...please interpret the order not as a prohibition or a ban but as an order which diverts trade to the needy, the poor and the vulnerable,” commerce secretary B V R Subramanian claimed