Relief On Wheat Export Ban: The Government of India is considering giving some relief in its decision to ban the export of wheat. It is believed that the government can allow export of about 12 lakh tonnes of wheat. In fact, on May 14, the government suddenly decided to ban the export of wheat. After which a large quantity of wheat cargo has been stuck at the ports which was to be exported. So the wheat loaded in trucks was on its way to the ports.
The fear of spoilage of wheat is troubling the government
The government had allowed the export of 4.69 lakh tonnes of wheat even after the ban. Despite this, 17 lakh tonnes of wheat is stuck in the cargo at the ports. The monsoon season has arrived, in such a situation the wheat lying outside the ports may get spoiled, so the government can allow the export of 12 lakh tonnes of wheat. Traders who have Letter of Credit for export of wheat will be allowed to export. However, many more traders are seeking permission from the government to export wheat. If the government allows export of wheat, then wheat can be sent to many countries including Bangladesh, Nepal, Indonesia, Philippines and Sri Lanka.
Wheat stuck at port
In fact, on 13 May 2022, the government had banned the export of wheat after rising wheat prices in the domestic market and fall in production. After this sudden decision taken by the government, wheat going from Kandla port to other port in large number for export got stuck. Thousands of trucks loaded with wheat were standing at the port. But now the Government has given concession in its decision and has decided that wherever the consignment of wheat has been handed over to the Customs Department for examination and has been registered in their system on or before 13.5. The consignments will be allowed to be exported. Then the central government had also allowed export of wheat consignment going to Egypt, which was already being loaded at Kandla port. Actually the government of Egypt had requested the Indian government to allow the export of wheat being loaded at Kandla port.
Ban imposed due to rising wheat prices
The Indian government had restricted the export of wheat to manage the food security situation in the country and to meet the needs of neighboring and vulnerable countries. Those who are affected by sudden changes in the global market of wheat and insufficient supply of wheat. This order will not be applicable in cases where the supply of wheat has been committed by private trade or the countries where wheat was being sent on the request of those countries keeping in mind the food security. According to the Ministry of Commerce, three main objectives will be fulfilled through this order, which include ensuring India’s food security and controlling inflation, besides helping countries which are suffering from food shortage. This will maintain India’s credibility as a supplier and the objective of the order will also provide a clear direction to the wheat market to prevent hoarding of wheat supplies.