CHANDIGARH: The Centre’s ban on wheat export with immediate effect has evoked mixed reactions, but according to agri experts, the move could benefit consumers as the soaring prices of wheat flour (atta) could stabilise. The price of wheat flour, which is a staple in north Indian households, has hit the highest in a decade. The retail prices of wheat and wheat flour have risen by 14-20% in the last one year. The Centre’s move is apparently aimed at reining in the rising domestic prices, though it’s being dubbed anti-farmer by some quarters. Apart from checking food inflation, the ban, according to sources, will also prevent hoarding for price manipulation in global markets.
Sources said the market prices of wheat are kept stabile by the open market sale scheme (OMSS) of the Food Corporation of India (FCI), which releases wheat by way of open tender at subsidised rate to the local flour mills. However, the FCI is likely to have no reserves in the coming months to issue under OMSS because of less central procurement this year. The flour mills will, therefore, have to buy from the open market which could drive up the prices of wheat flour (atta) and products made from it such as bread and biscuits.
Leading agriculture expert Devinder Sharma tweeted, “Good that restriction is being imposed on wheat exports. With wheat prices in intentional markets jumping by 60 per cent in April (as per World Bank) the trade interest in unbridled exports is obvious, but policy makers have to ensure adequate stocks for meeting domestic need.’’
Sharma had earlier said that the wheat prices registered an increase of nine per cent in the past four years but the prices of atta went up by 42 per cent. Data from Union Consumer Affairs Ministry shows the the all-India average retail price of wheat flour or atta was `29.14 per kg on May 8. The maximum price of atta was `59 per kg and the minimum stood at `22. The price was the highest, `49 per kg, in Mumbai, `34 per kg in Chennai, `29 per kg in Kolkata and `27 per kg in Delhi. In Punjab, retailers are selling atta at `32-33 a kg while branded ones are even costlier.