Wheat Exports of India
Context:
- As Russia and Ukraine, the largest exporters of wheat were at war, India has been looking forward to fill this gap by boosting its own exports.
- But on May 13, the government effectively banned the export of wheat.
Background:
- The Directorate General of Foreign Trade (DGFT), Department of Commerce had issued such order on export of wheat but it has given some relaxation to export those commodities that were booked before the date of the order was issued.
- Amidst the war between Russia and Ukraine, the demand for Indian wheat has increased in the overseas.
- Wheat production in India is also expected to be lower than the estimated 111 lakh metric tonnes.
- However there are apprehensions among the food security campaigners, they argue that internal consumption should be given top priority.
Why ban on exports?
- The government’s estimates of wheat production has been reduced from 111 metric tonne to 105 MT.
- Apart from this the procurement has substantially decreased to 18 MT which was 36.7 MT last year.
- So, it was felt that lesser production and along with it lesser procurement may affect internal consumption.
- Also the prices have been fluctuating due to inflation, the wholesale inflation has been somewhere around 14% and the retail inflation has been around 9.59%.
- Considering these two factors, the government has decided to ban export of wheat.
Why the production has declined?
- The extreme weather condition prevailing in Northern India has led to the decline in the output.
- The extreme heat which prevailed has led to this drastic decline in the total production in India.
Source The Hindu
