India has temporarily prohibited wheat exports with immediate effect, ostensibly to control local price increases. Wheat prices reached a decadal high in April in the country, which is the world’s second-largest wheat producer. Due to a projected big decline in output due to a severe heatwave and a rapid rise in domestic food prices, particularly grains, the country risks a lower production move.
The official announcement comes as the Ukraine war, which began in February, enters its 12th week, and countries’ access to the Black Sea has been restricted. The United Nations has regularly expressed worry about a possible food crisis.
The Directorate General of Foreign Trade (DGFT) issued a notification on Friday night saying, “The export policy of wheat… is prohibited with immediate effect…”
Wheat exports, on the other hand, will be permitted if the government grants permission to other nations to meet their food security needs based on their requests. “Export will be permitted for shipments accompanied by an irrevocable letter of credit issued on or before the notification date.” Export will be permitted based on authorization granted by the Indian government to other nations to meet their food security needs, as well as government requests,” according to the statement.
In the midst of the Ukraine conflict, India hoped to assist other countries. “Today the globe is facing an unpredictable situation since nobody is getting what they want,” Prime Minister Narendra Modi remarked last month during a conversation with US President Joe Biden. Petrol, gasoline, and fertilizers are becoming increasingly difficult to obtain as more doors close. After the (Russia-Ukraine) war broke out, everyone wanted to safeguard their stocks.” he stated
In the fiscal year that ended in March, India exported a record 7.85 million tones, up 275 percent from the previous year. However, analysts believed that reduced output will result in a supply shortage in the coming months.
