Wheat exports have been banned by the government of India with instant effect with the hopes to address a bundle of problems right from the low production of wheat to the heightening inflation primarily triggered by the Russia-Ukraine conflict.
The Indian government stated that the decision was taken to control the hike in domestic prices. The interesting fact is that the decision was taken just after India mentioned that it targeted record shipments in this current year.
The major reasons behind banning wheat export
The scorching heatwave and the war are the two main reasons for this ban. Wheat prices have risen by over 40% since this year’s beginning because of the Russia-Ukraine conflict. Before this conflict, Russia and Ukraine accounted for one-third of the global barley and wheat exports. But after Russia’s invasion, the ports of Ukraine were blocked, and grain silos were destroyed.
The scorching and killing heatwave has also stunted wheat production in India. Yes, India produces copious wheat amount, but it also consumes the most.
India has targeted to export 10 MTs of grain in 2022-2023 to capitalize on the worldly disruptions to the supplies of wheat due to the war and then look for newer markets in Asia, Europe, and Africa.
The Indian government was confident because it estimated that the wheat production would go to 111.32 MTs. But the sudden hike in temperature in March stunted the growth of wheat. As per the information published in the Hindu BusinessLine.
The hope of export
India will not supply wheat across the globe. However, exports can take place in case the requests from other governments are approved by New Delhi. Egypt is talking with the government of India about the export ban’s exemption.
The Indian government also stated that they might revise the ban in the future.
The criticism and official view of this wheat export ban
A lot of nations are criticizing India because India decided to ban wheat exports at a time when the prices are already soaring high.
Cem Ozdemir, the minister of German agriculture, said to the journalists of BusinessLine that in case everyone puts a halt on export, the crisis will be worsened.
India’s wheat exports ban is more of a calculated measure for keeping the domestic prices under control. However, BVR Subrahmanyam told The Times of India that no supply crisis of wheat is there across the country. Also, it will soon meet the food requirements of the neighboring countries and several other vulnerable nations.
The primary goal is to put a check on the inflation in the country. Also, this measure ensures the availability of food stock in the country.
Food is the primary need of a country. It serves everyone, including the rich, the poor, and the mediocre. However, among all staples, wheat is an essential element in the food industry. It serves the economy on a wide scale.
Thus, the Indian government has banned wheat export so as to enable the citizens of India to consume a sufficient amount of wheat. Besides, controlling the soaring food prices is another reason.