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breaking news Government says wheat export ban decision based on rising prices, not stock issues


A day after the government banned wheat exports with immediate effect as part of measures to control rising domestic prices, the secretaries of the Food, Trade and Agriculture Union held a conference release to explain the sudden decision.

Food Secretary Sudhanshu Pandey said the decision should not be misinterpreted and said it was taken in view of rising food grain prices across the country. He said the decision was not made on a whim and had been the subject of a lot of thought. “The public distribution system (PDS), which is the backbone of the country’s food security system, will run smoothly. Availability of wheat is not an issue, but prices are rising,” Pandey said. at Saturday’s press conference.

Export shipments for which irrevocable letters of credit have been issued no later than the date of this notification will be permitted, the Directorate General of Foreign Trade (DGFT) said in a notification dated May 13.

Daily average retail price (Rs/kg)
Commodity Price as of May 9, 2022 1 week ago 1 month ago 1 year ago % Change over
1 week 1 month 1 year
Rice 36.07 35.59 36.05 35.81 1.35 0.06 0.73
Wheat 29.49 28.78 28.37 24.71 2.47 3.95 7:34 p.m.
Atta (Wheat) 32.91 32.44 32.06 28.8 1.45 2.65 14.27

Average daily wholesale price (Rs/quintal)

Commodity

Price as of May 9, 2022

1 week ago

1 month ago

1 year ago

% Change over

1 week

1 month

1 year

Rice

3,135.87

3,096.65

3,105.06

3,060.46

1.27

0.99

2.46

Wheat

2,582.01

2,545.64

2,483.6

2,124.16

1.43

3.96

9:55 p.m.

Atta (Wheat)

2,789.12

2,784.66

2,696.25

2,406.97

0.16

3.44

15.88

Source: Department of Consumer Affairs

India’s wheat production forecast has been revised down to 1,050 MT from 1,113 MT. “Last year’s production figures were 1,095 MT. The ongoing heat wave has affected yield to some extent – expect 1,050 MT this year and a small drop in yield in Punjab and in Haryana,” Agriculture Secretary Manoj Ahuja said.

The government had previously clarified that wheat exports would be allowed on the basis of permission granted by the Indian government to other countries to meet their food security needs and based on the request of their governments. Commerce Secretary BVR Subrahmanyam reiterated this and said, “We are not reneging on any existing wheat contracts. There will be no Open Hidden Selling System (OMSS); only for existing contracts.

Subrahmanyam said the decision to ban the open export of wheat was also taken to curb hoarding due to rising prices. “There is no dramatic drop in wheat production; there are ample food stocks with the government and private sector, but wheat prices have risen by almost 40% in some parts of the country. food is a sensitive commodity for all. government is committed to ensuring food security for vulnerable neighbors and countries,” he said.

He said that internationally too, wheat prices have gone up. “Wheat is sold between 450 and 480 dollars per ton. We bought 433 lakh MT last year and 180 LMT so far this year but stocks will be lower than last year.

Food Secretary Pandey said the government had changed the proportion of wheat and rice provided under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). “States that get 100% wheat will continue to get some, but other states that get a mixed supply will get a higher proportion of rice,” he said.

Fifty-five LMTs of wheat were substituted with rice at PMGKAY, while 61 MLTs of wheat were substituted with rice for distribution under the National Food Security Law.

Monthly average retail prices by area of ​​atta (wheat) (Rs/kg)

Area

A month ago

One year ago

Change %

May-22

Apr-22

May 21

A month

One year

North

27.68

27.78

25.56

-0.36%

8.29%

West

32.18

31.85

29.06

1.04%

10.74%

East

29.04

28.95

25.91

0.31%

12.08%

Northeast

32.14

31.99

31.58

0.47%

1.77%

South

41.68

41.18

31.36

1.21%

32.91%

Average monthly wholesale prices by area of ​​atta (wheat) (Rs/quintal)

Area

A month ago

One year ago

Change %

May-22

Apr-22

May 21

A month

One year

North

2415.35

2397.25

2209.12

0.76%

9.34%

West

2786.25

2735.45

2390.97

1.86%

16.53%

East

2558.98

2547.06

2253.46

0.47%

13.56%

Northeast

2860.03

2838.86

2524.12

0.75%

13.31%

South

3266.8

3228.47

2990.92

1.19%

9.22%

Source: Department of Consumer Affairs

Pandey said India currently has 331 MT of rice and 320 MT of wheat in stock, adding that 222 MT of wheat are currently being supplied.

“Estimated production changed in a month – many other countries saw their crops fail,” Subrahmanyam said.

According to government information, wheat production has been affected in the following countries:

European Union: Crops in half of the wheat belt are missing rain at the start of a key development period, and temperatures in France, the top producer, have reached abnormally early summer levels – production could fall.

United States: Drought is rife in the American Central Plains. Harvest in Kansas, the top producer, begins next month and production will drop. Crop insurance agents expect some fields to produce zero to five bushels per acre, compared to the normal 35 to 40 bushels.

Canada: Low temperatures are delaying seeding in Canada, and growers are now trying to seed in fields that are too wet or too dry. Drought is a concern in southern Alberta, a growing region of spring wheat and durum wheat used in pasta.

Food Secretary Pandey said seven other countries – Russia, Argentina, Kazakhstan, Hungary and Bulgaria included – have already banned the export of wheat. The Philippines has launched a campaign to consume less wheat products

“Feelings were driving prices up, but the market knows about supply and demand regulations. Price easing will happen,” Pandey added.

“The Department of Commerce will hold a series of export meetings in major wheat-producing states. The decision (to ban the export) is dynamic and based on periodic estimates. We must maintain the credibility of traders – they must also export wheat in the future,” Commerce Secretary Subrahmanyam said.


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