India has banned wheat exports with instant impact as a part of measures to regulate rising home costs, in line with official notification.
Photograph: Ajay Verma/Reuters
However, the export shipments 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 Directorate General of Foreign Trade (DGFT) stated in a notification dated May 13.
“The export policy of wheat … is prohibited with immediate effect…,” the DGFT stated.
It additionally clarified that wheat exports will likely be allowed on the premise of permission granted by the Government of India to different international locations 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 policy of onion seeds has been put under the restricted category, with immediate fact,” it stated.
The export of onion seeds was earlier prohibited.
Official knowledge launched this week confirmed that retail inflation surged to an eight-year excessive in April as a consequence of excessive costs of gas and meals gadgets.
The ban on exports additionally comes amid disruption in international wheat provides because of the ongoing conflict between Russia and Ukraine that are main exporters of the foodgrain.
India’s wheat exports surged to 7 million tonnes, price USD 2.05 billion, in 2021-22 as a consequence of robust international demand.
Of the full wheat exports, round 50 per cent of shipments have been exported to Bangladesh within the final fiscal, in line with the DGFT knowledge.
The nation exported round 963,000 tonnes of wheat this yr towards 130,000 tonnes in the identical interval final yr.
India was trying 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 international locations – Morocco, Tunisia, Indonesia, the Philippines, Thailand, Vietnam, Turkey, Algeria and Lebanon – to discover potentialities of boosting wheat shipments.
India’s wheat buy have additionally declined sharply by 44 per cent to 16.2 million tonnes as of May 1 within the present Rabi advertising season as a consequence of heavy lifting by personal merchants and low arrivals in Punjab and Haryana.
The authorities had procured 28.8 million tonnes of wheat within the year-ago interval.
The rabi advertising season runs from April to March.
Private gamers have purchased wheat at a worth larger than the minimal help worth amid elevated demand for the grain for export.
The Centre has set a goal to acquire a document 44.4 million tonnes of wheat within the 2022-23 advertising yr as towards an all-time excessive of 43.34 million tonnes within the earlier advertising yr.
Amid decrease buy for the central pool, the Centre has stopped the sale of wheat beneath the Open Market Sale Scheme (OMSS) to bulk customers and requested them to not watch for recommencement of the scheme for purchasing the grain.
Wheat manufacturing is pegged at a document 111.32 million tonnes within the 2021-22 crop yr (July-June), as per the second advance estimate of the agriculture ministry.