May 19, 2022

Great Indian Mutiny

Complete IndianNews World

India bans wheat exports due to global rise in prices | World | D.W.

The ban will come into effect from Saturday (14.5.2022), but exports already collected will be allowed. “Prevents wheat export policy from taking effect immediately,” the Directorate General of Foreign Trade said in a statement, with the exception of the “non-refundable letter of credit issued” prior to the announcement.

The text also states that the Government of India may grant special permission to export wheat to countries at risk of food shortages. According to the report, “The Government of India has taken a negative view of India’s food security needs from neighboring countries and other developing and vulnerable countries, which have been adversely affected by the sudden changes in the market.

Of course change

In the last financial year 2021-2022, India broke its record in wheat exports, reaching 7 million tonnes of this grain, valued at over $ 2,000 million, according to the Directorate General of Foreign Trade.

The ban on wheat exports contradicted Indian Prime Minister Narendra Modi’s claim last April that India could feed the rest of the world if the WTO allowed it to do so.

India is the second largest producer of wheat in the world. It collects about 107 million tonnes annually, which is 13.5 per cent of world production, according to data from the Ministry of Commerce. However, the bulk of that harvest was destined for domestic consumption.

High inflation

Wheat prices have risen sharply since the beginning of the conflict between Russia and Ukraine, as the two countries represent about 30 percent of global grain exports. Rising wheat prices, along with other foods and oil, have pushed inflation in India to 7.79 per cent in April 2022, the highest level since May 2014.

See also  Germany beat India on penalties in women's hockey

In addition, India has been hit by several severe heat waves in recent weeks, reaching 47 degrees Celsius in some parts of the country. High temperatures have destroyed their wheat fields and reduced crop yields.

MS (eff / dlf)