India, the globe’s second largest wheat producer, Saturday banned its exports with immediate effect in order to cool spiraling prices made worse by Russia-Ukraine crisis.
However, commitments made to other nations for their food security will be honoured by the government and all valid contracts of exports will be allowed to take place.
"We don't want wheat trade to happen in an unregulated manner or hoarding to happen... we are not reneging on any existing wheat contract," Commerce Secretary BVR Subramanyam said in a press conference called hours after the wheat ban notification.
He said there was enough stock of wheat in the country and the sudden spike in prices was caused due to its unregulated trade.
Wheat and atta prices have gone up by nearly 40% in many parts of the country but the secretary said there was no dramatic fall in its production. Soon after the decision, wheat prices in various mandis across the country fell by about Rs 100 per quintal.
The decision to ban exports came days after the Centre announced it would send trade delegation to Morocco, Tunisia, Indonesia, Philippines, Thailand, Vietnam, Turkey and Lebanon for exploring possibilities of wheat exports from India.
The ban was criticised in India and abroad. “If everyone starts to impose export restrictions or to close markets, that would worsen the crisis," German Agriculture Minister Cem Ozdemir said at a press conference in Stuttgart. Germany is a member of the G-7 industrialised nations.
“From India will feed the world by asking WTO to permit wheat export procured at MSP to ban wheat export, India’s wheat policy has gyrated strangely over few weeks. As a consequence, farmers will lose opportunity to get higher prices and FCI will get a lot of wheat at MSP, “ said former finance secretary S C Garg.
India produced over 109 million tonnes of wheat last year (July-June). Production is, however, expected to be less by four to five million tonnes this year due to the unexpected heat wave in March that impacted its yield.
“I presume the ban is because the Centre has failed to procure enough wheat. It is not that wheat production has come down. It is an anti-farmer measure,” said senior Congress leader P Chidamabaram.
Food Secretary Sudhanshu Pandey said the Pradhan Mantri Garib Kalyan Anna Yojana, the free ration scheme started during the Covid pandemic to feed over 80 crore people, will continue. However, the proportion of rice supply will increase under the scheme for states, which have been getting mixed supplies.