May 14, 2022
2 mins read

India bans wheat exports to ensure food security

Exports would be allowed only in case of shipments where irrevocable Letter of Credit (LoC) has been issued on or before May 13…reports Asian Lite News

The Central government has placed a ban on wheat export with immediate effect in the wake of the grave situation of less than estimated domestic wheat production and an excessive global price hike after a spike in demand following the Russia-Ukraine war.

There is just one exception mentioned in the notification that was issued late on Friday.

Earlier, the Centre had said it was happy that the farmers were getting good returns for their produce as India had exported almost 11 lakh metric tonnes (LMT) of wheat till April.

The government also claimed that it was committed to provide food security to its own population, its neighbours and also some vulnerable countries and hence brought in the amendment in relevant sections of the Export Policy.

Exports would be allowed only in case of shipments where irrevocable Letter of Credit (LoC) has been issued on or before May 13.

Since the new wheat came in the market, a large number of farmers had been selling their produce to private traders who in turn were sending it to exporters in the face of the huge demand.

Both Russia and Ukraine have been the largest exporters of wheat in the international markets. Ever since the war broke out on February 24, the supply has been disrupted with an increase in demand.

Due to massive heat waves in March and April, the estimated food grain production had revised to 1,050 LMT against the earlier estimate of 1,113 LMT.

Indian traders had been buying wheat directly from the farmers at increased prices leading to a shortfall in government procurement too.

However, Secretary Food, Sudhanshu Pandey had told media persons just 10 days ago that India had enough stocks to cater to its domestic requirement to ensure food security.

Wheat export in 2019-20 was 2.17 lakh metric tonnes that had increased to 21.55 LMT in 2020-21, which in turn increased to 72.15 LMT in 2021-22.

“This season, about 40 LMT wheat has been contracted for export and about 11 LMT has already been exported in April 2022,” Pandey had said.

ALSO READ-Full-blown war: Wheat exports and inflationary pressure

Previous Story

Indian leaders, business community mourn passing of UAE President

Next Story

Bilawal soothes China, compares slain Chinese teachers to his sisters

Latest from Business

China Curbs Hit India’s Electronics Boom

The ICEA noted this results in delays, inefficiencies, and higher costs — alternatives from Japan or Korea cost up to four times more than Chinese machinery. India’s transformation into a global electronics

India Maps 8.52 MT Rare Earth Reserves

The Atomic Minerals Directorate for Exploration and Research (AMD) and the Geological Survey of India (GSI) are actively exploring and augmenting rare earth resources, while the GSI alone has added 482.6 million

‘India’s Digital Hub Ascends’

The event also featured discussions on the Quad Partnership for Cable Connectivity and Resilience, reiterating commitments made during the July 1 Quad Foreign Ministers’ Meeting India’s growing role as a key digital

India’s Job Market Surges

With hiring levels on the rise, compensation is expected to increase by 12-15% in metro cities and by 18-22% in emerging cities India’s festive season this year is poised to create more
Go toTop

Don't Miss

India, UK consider new areas for defence cooperation

The Embassy added that both sides reviewed the progress of

Fantasy sports gaming revenue to ride on IPL 2023

Transacting users during IPL season is expected to grow by