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Government prohibits wheat exports with immediate effect to control rising domestic prices


The federal government with fast impact has banned wheat exports as a part of measures to regulate rising home costs, in response to an official notification.

The Directorate Normal of International Commerce (DGFT) mentioned in a notification dated Might 13, that the export shipments, nevertheless, for which irrevocable letters of credit score (LoC) have been issued on or earlier than the date of this notification will likely be allowed

“The export coverage of wheat is prohibited with fast impact,” the DGFT mentioned.

It additionally clarified that wheat exports will likely be allowed based mostly on permission granted by the Authorities of India to different nations to fulfill their meals safety wants and based mostly on the request of their governments.

In a separate notification, the DGFT introduced the easing of export situations for onion seeds.

“The export coverage of onion seeds has been put underneath the restricted class, with fast truth,” it mentioned. The export of onion seeds was earlier prohibited.

Official information launched this week confirmed that retail inflation surged to an eight-year excessive in April on account of excessive costs of gas and meals objects.

The ban on exports additionally comes amid disruption in world wheat provides because of the ongoing warfare between Russia and Ukraine that are main exporters of the foodgrain.

India’s wheat exports surged to 7 million tonnes, value USD 2.05 billion, in 2021-22 on account of robust world demand. Of the overall wheat exports, round 50 per cent of shipments had been exported to Bangladesh within the final fiscal, in response to the DGFT information.

The nation exported round 963,000 tonnes of wheat this 12 months in opposition to 130,000 tonnes in the identical interval final 12 months.

India was seeking to export 10 million tonnes of wheat in 2022-23. The commerce ministry not too long ago said that India would ship commerce delegations to 9 nations – Morocco, Tunisia, Indonesia, the Philippines, Thailand, Vietnam, Turkey, Algeria and Lebanon – to discover potentialities of boosting wheat shipments.

India’s wheat purchases have additionally declined sharply by 44 per cent to 16.2 million tonnes as of Might 1 within the present Rabi advertising season on account of heavy lifting by non-public merchants and low arrivals in Punjab and Haryana.

The federal government had procured 28.8 million tonnes of wheat within the year-ago interval. The rabi advertising season runs from April to March.

Personal gamers have purchased wheat at a worth increased than the minimal assist worth amid elevated demand for the grain for export.

The Centre has set a goal to acquire a file 44.4 million tonnes of wheat within the 2022-23 advertising 12 months as in opposition to an all-time excessive of 43.34 million tonnes within the earlier advertising 12 months.

Amid decrease buy for the central pool, the Centre has stopped the sale of wheat underneath the Open Market Sale Scheme (OMSS) to bulk shoppers and requested them to not watch for recommencement of the scheme for getting the grain.

Wheat manufacturing is pegged at a file 111.32 million tonnes within the 2021-22 crop 12 months (July-June), as per the second advance estimate of the agriculture ministry.

(With PTI Inputs)

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