India has banned the export of wheat with immediate effect. The government, in a notification issued late on Friday night, made it an attempt to rein in local prices by the world’s second largest wheat producer. The government has said that shipment of wheat will be allowed against the letter of credit already issued.
Global buyers were reaching India for wheat supplies after exports from the Black Sea region fell since Russia’s invasion of Ukraine in late February.
Earlier, Union Commerce Minister Piyush Goyal said in a tweet on April 15 that Indian farmers are feeding the world. Egypt has allowed import of wheat from India. Considering the increasing demand in the world, wheat exports will cross 100 lakh (10 million) tonnes in the financial year 2022-23.
Now the situation has changed in the country. Government procurement has been affected due to the purchase of wheat at a price higher than the MSP and decrease in yield. The government has now banned the export of wheat. Let us tell you that these days wheat is being sold in the market at a price higher than the minimum support price.