Asserting that there is no such thing as a wheat provide disaster within the nation, Commerce Secretary BVR Subrahmanyam on Saturday stated the federal government’s choice to ban wheat exports will assist in controlling rising home costs and assembly the meals requirement of India’s neighbours and weak international locations.
The authorities has banned wheat exports with speedy impact. However, the export shipments for which irrevocable letters of credit score (LoC) have been issued on or earlier than the date of this notification will likely be allowed.
Subrahmanyam stated that the choice was taken on the proper time.
“There is no dramatic fall in production. I do not think there is a crisis which needs to be imagined. There is adequate food available in government stocks and private stocks,” he stated whereas addressing a joint press briefing together with counterparts within the departments of meals and agriculture.
Explaining the rationale behind the choice, the commerce secretary stated the first aim was to place a “check on inflation”.
“So, what is the purpose of this order. What it is doing is in the name of prohibition – we are directing the wheat trade in a certain direction. We do not want the wheat to go in an irregulated manner to places where it might get just hoarded or where it may not be used to the purpose which we are hoping it would be used for,” Subrahmanyam stated.
The focus has additionally been given to making sure satisfactory meals inventory availability inside the nation.
“At the end of the day, food is a very sensitive item for every country because it affects everybody – poor, the middle and the rich,” he stated, including the wheat flour costs have gone up in some components of the nation by about 40 per cent.
The authorities can also be dedicated to making sure the meals safety of neighbours and weak international locations.
“So, we have kept the window open for (our) neighbours. We have also kept the window open for a large number of vulnerable countries if their governments do make such requests,” he added.
The secretary highlighted that the nation has exported 7 million tonnes of wheat over the past fiscal, out of which about 50 per cent have been shipped to Bangladesh.
Talking concerning the present fiscal 2022-23, he stated as per estimates, 4.three million tonnes of wheat have been contracted for exports to date.
Out of this, 1.2 million tonnes have already been exported in April and May, and one other 1.1 million tonnes are anticipated to be shipped, he stated, including “if you have a valid order – irrevocable letters of credit – that contract will be honoured. So, India’s credibility as a reliable supplier is maintained”.
Further, he stated that if the value scenario improves, the federal government might evaluate this choice.