India bans wheat exports with immediate effect

Tags: National Economics/Business

The central government has banned the export of wheat with immediate effect. The Directorate General of Foreign Trade issued a notification in this regard.

• Why has the central government banned the export of wheat?

• The export policy of wheat has been amended to manage the overall food security of the country.

• The ban has been imposed to support the needs of neighbouring countries and other vulnerable countries.

• The decision to ban the export of all types of wheat with immediate effect will bring down the market prices of wheat immediately and bring it closer to the MSP of Rs 2,015 per quintal.

• India’s wheat exports

• India's wheat exports rose to 7 million tonnes worth USD 2.05 billion in 2021-22 due to strong global demand.

• In the last fiscal, about 50 per cent of the total wheat exports were exported to Bangladesh.

• The country exported around 963,000 tonnes of wheat this year against 130,000 tonnes in the same period last year.

• India was looking to export 10 million tonnes of wheat in 2022-23. 

• India would send trade delegations to nine countries – Thailand, Morocco, Turkey, Indonesia, Tunisia, the Philippines, Vietnam, Algeria and Lebanon to explore possibilities of boosting wheat shipments.

• India’s wheat purchases have also declined sharply by 44 per cent to 16.2 million tonnes as of May 1 in the current Rabi marketing season.

• The rabi marketing season runs from April to March.