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India prohibits wheat exports with immediate effectWheat and atta prices have been spiralling in the recent months and have contributed to enormous rise in the retail price inflation that has spiked to 7.8%
Annapurna Singh
DHNS
Last Updated IST
Representative image. Credit: iStock photo
Representative image. Credit: iStock photo

In the backdrop of spiralling prices, India has banned the export of wheat with immediate effect.

In a late Friday night notification, the ministry of commerce said the exports of the commodity will only be allowed on the basis of permission already granted to other countries to meet their food security needs.

"The exports will be allowed in case of shipments where irrevocable Letter of Credit has been issued on or before the date of this notification..., " the Directorate General of Foreign Trade (DGFT) said.

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Export will be allowed on the basis of permission granted by the government of India to other countries to meet their food security needs and based on the request of the governments,” it said.

Wheat and atta prices have been spiralling in the recent months and have contributed to enormous rise in the retail price inflation that has spiked to 7.8%, way beyond the upper limit of the Reserve Bank of India's tolerance.

Retail inflation in wheat and atta rose to nearly 10% in April from 7.7% in March, the government data shows.

India had earlier hoped to double its shipment of wheat to 15 million tonnes this year to help countries affected by the Russia-Ukraine war which has halted their regular supplies. India also expected the World Trade Organisation to relax rules in order for India to do so.

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(Published 14 May 2022, 08:26 IST)