Government’s big decision amid record inflation, ban on export of wheat with immediate effect
in country Wheat Amidst the rise in prices, the government has taken a big decision. To control the prices, the government has decided to increase the prices of wheat. on export It has been decided to ban with immediate effect. According to the notification issued by the government in this regard, the amount of wheat to be exported before the declaration or till the day of shipment for which letter of credit has been issued. The government has taken this decision in view of rising inflation. Retail inflation in April stood at 7.79 per cent, the highest in eight years.
India is the second largest producer of wheat in the world and is currently facing a sharp rise in prices in the domestic market. In fact, the demand for wheat has increased in the global market. The Ukraine crisis has adversely affected wheat shipments through the Black Sea. In such a situation, demand from India increased and exports also increased. In the financial year 2021-22, India has exported 70 lakh tonnes of wheat. Wheat exports from India have picked up after the Ukraine crisis.
India bans export of wheat with immediate effect
– Press Trust of India (TIPTI_News) May 14, 2022
Up to 40 percent increase in prices
The ongoing war between Russia and Ukraine has resulted in a huge jump in both the export and demand of wheat from India. In April alone, India exported a record 1.4 million tonnes of wheat. Wheat prices have risen by up to 40 per cent in the global market due to less supply than demand. Its impact is being felt in the domestic market as well.
Wheat inflation at 63-month peak
India’s wholesale wheat inflation stood at 14 per cent in March, hitting a 63-month high. Earlier in December 2016, the wholesale price of wheat was higher than this.
expected reduction in yield
After five years of record production, wheat production in India is expected to decline this year. The government had earlier estimated wheat production at 111.32 MT for the crop year ending in June. This has now come down by 5.7% to 105 million tonnes. Apart from this, the government procurement target for wheat can be halved. Wheat crop has been severely damaged by heat wave in North and West India.