India open to exporting wheat to needy nations despite ban

NEW DELHI –

India on Sunday saidIt would allow wheat exports to food-deficit nations at the government level, despite restrictions that were announced two days ago.

B.V.R., India’s Commerce Secretary. Subrahmanyam said to reporters that the government would also allow private companies to fulfill their previous commitments to export almost 4.3 million tonnes of wheat by July. India exported 1,000,000 tons of wheat in April.

India exports wheat mainly to its neighbours, Nepal, Bangladesh and Sri Lanka.

A notice by the Directorate of Foreign Trade in the government gazette saidThe food security of India, and the other countries that are dependent on it, was threatened by a rise in global wheat prices.

Export restrictions are designed to curb rising domestic prices. Since the start of the year, global wheat prices have increased by over 40%.

Prior to the war, Ukraine was responsible for one third of all global wheat and barley exports. After Russia’s February 24 invasion, Ukraine’s ports were blocked and civilian infrastructure was destroyed.

India’s wheat harvest was also affected by the record-breaking heat wave, which is reducing production.

He saidIndia’s wheat production has fallen by three million tonnes this year, compared to 106 million tons in 2013. India has seen wheat prices rise by 20-40%.

Subrahmanyam said, “The current rise of prices seems to be panic reaction rather than an actual collapse in supply.” said.

India, despite being the second-largest wheat producer in the world is still the largest consumer of all the wheat it produces. It set a goal to export 10 million tonnes of the grain by 2022-23. This was to take advantage of global disruptions in wheat supply caused by the war, and to find new markets for its wheat in Europe and Africa.

Subrahmanyam estimates that India consumed 90 million tonnes of wheat last year, out of a total of 109 millions tons. saidIndia exported 7,000,000 tonnes of wheat last year, he said.

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