Russo-Ukraine War (Russia-Ukraine War) continues. Meanwhile, the food crisis has deepened in many countries. For example, the supply of wheat to many countries from these two countries, which are called wheat strongholds, has been completely affected. Thus the Indian Wheat ,Indian Wheat) has increased in demand worldwide. As a result, wheat is being sold inside the country at a price higher than the Minimum Support Price (MSP). Meanwhile, the central government has put an immediate ban on the export of wheat from Friday night. The reason being told is that the production of wheat in the country (Wheat Production) This decision has been taken due to less. There has been a lot of turmoil in the market after this decision. Let us try to understand what is the reason behind the ban on export of wheat. What are the 5 main reasons behind this decision.
Production expected to be less than last year
The main reason behind the decision to stop wheat exports is being estimated to be less production than last year. In fact, till February, more production was being estimated than last year, but in May the government has issued revised estimates, in which less production has been estimated. In fact, the Department of Agriculture and Farmers Welfare and Directorate of Economics and Statistics had released the Advance Estimate Report in February 2022 regarding the total production of all the crops. Under which the production of wheat during the Rabi season in the year 2021-22 was estimated to be about 2 million tonnes more than that of 2020-21. According to the advance estimate report released, wheat production during the Rabi season in the year 2020-21 was 109.59 million tonnes, in the year 2021-22, the advance estimate of wheat production during the Rabi season was estimated at 111.32 million tonnes, but In the first week of May, the Agriculture Ministry released the revised estimate of wheat production. Under which production of 105 million tonnes is estimated in this Rabi season.
Wheat is being sold at a higher price than MSP, due to which inflation increased
One of the main reasons for the ban on the export of wheat is that the price of wheat is sold more than the Minimum Support Price (MSP). In fact, due to the war between Russia and Ukraine, the demand for Indian wheat has increased significantly abroad. Because of this, the prices of wheat in the open markets of the market are running more than the MSP. The government has fixed the MSP of wheat at Rs 2015 per quintal, but at present, the price of wheat inside the market is running up to Rs 2400 per quintal. As a result, a record shortfall has been registered in the arrival of wheat in the procurement centers set up by the government. At the same time, the prices of food products made from wheat are at new heights in the market.
The procurement has not happened even half of the target so far, lowest in 13 years
The impact of the Russo-Ukraine war and low production has been the most in the Indian market of wheat. Because of this, the prices of wheat are running more than the MSP and the government process of wheat procurement has been completely affected. Alam is that this time the procurement of wheat at MSP has not even been half of the target. At the same time, this year the lowest wheat procurement is being estimated in 13 years. In fact, this time the government has set a target of purchasing 444 tonnes of wheat. Out of which only 156 tonnes have been procured till May 5. Although it is expected to increase, but it is believed that this time the lowest wheat procurement will be done in 13 years.
Record target of export and promise of free ration also spoiled mathematics
There is turmoil in the market after the ban on export of wheat. This decision of ban on export has been taken then. When the prices of wheat-related products have started reaching a high in the market, but the market experts are also accepting the record target of exports and the promise of free ration as the reason for the ban on exports. In fact, the government had exported 70 lakh tonnes of wheat last year, while this time the target of wheat export has been set at 100 lakh tonnes. Which is 45 percent more directly. At the same time, many states have also announced to distribute free ration. In such a situation, both the targets are likely to be affected by the record reduction in wheat production and government procurement. Due to which there may be shortage of wheat in the market in the coming days.
In this regard, Praveen Khandelwal, National General Secretary of Confederation of All India Traders (CAT), says that of course there may be a potential shortage of wheat within the country due to free ration distribution and record export targets, but for now the government has to take domestic consumption of wheat. The figures are to be released, after which a lot will become clear.
Preparations to rein in wheat storage
One of the main reasons till wheat exports is also believed to be curbing wheat storage. Actually wheat arrives in Rabi season. At the same time, the Russo-Ukraine war is also going on. In such a situation, speculations are being made that in the coming days it will remain at the global level. In which the price of wheat is likely to be higher than the current price. In such a situation, there is speculation that from farmers to traders, wheat is being stored at this time. Due to which the government procurement of wheat has also been affected. In such a situation, with this decision of banning exports, the government is going to ban the storage of wheat. Due to which government procurement will increase.