Centre bans wheat export with immediate effect

The Centre has amended the export policy of wheat by putting its export under the ‘prohibited’ category.

The Centre has amended the Export policy of wheat by putting its export under the “prohibited” category.

The order that was rolled out by the Ministry of Commerce late Friday night stated that the government has banned the wheat exports with “immediate effect”. The government said that the move is being made to manage the overall food security of the country and to the needs of the neighbouring and other vulnerable countries.

“There is a sudden spike in the global prices of wheat arising out of many factors, as a result of which the food security of India, neighbouring and other vulnerable countries is at risk,” said the Ministry in its notification. However, the export will be allowed in case of shipments where an irrevocable letter of credit is issued on or before the date of notification. The export will be allowed on 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. Earlier, the Centre said on Thursday that it will send trade delegations to several countries including Morocco, Tunisia, Indonesia, Philippines, Thailand, Vietnam, Turkey, Algeria and Lebanon for exploring the possibility of boosting wheat exports.

India has set a target of exporting 10 million tonnes of wheat in 2022-23 amid rising demand for grains globally. The Ministry of Commerce and Industry has already set up a task force on wheat exports with representatives from various ministries, including commerce, shipping and railways, and exporters under the aegis of the Agricultural and Processed Food Products Export Development Authority (APEDA).

There is a rise in the demand for Indian wheat in the global market. Farmers, traders and exporters have been advised to follow all the quality norms of importing countries so that India emerges as a reliable supplier of wheat globally, the Union Ministry of Commerce and Industry said in a statement. “We are extending our support to all the stakeholders in the wheat exports value chain for boosting shipment from the country,” said M Angamuthu, Chairman, Agricultural and Processed Food Products Exports Development Authority (APEDA). According to estimates by the Directorate General of Foreign Trade, India has exported a record 7 million tonne (MT) of wheat in 2021-22 which is valued at $2.05 billion. Out of the total shipment around 50 per cent of wheat was exported to Bangladesh in the last fiscal. Recently, Egypt, which is one of the world’s biggest importers of wheat, had agreed to source wheat from India. Egypt imported 6.1 MT of wheat in 2021 and India was not part of the list of accredited countries. .

More than 80 per cent of Egypt’s wheat imports estimated to be close to $2 billion in 2021 were from Russia and Ukraine. APEDA has already communicated to exporters to register with Egypt’s public procurement agency - General Authority of Supplies and Commodities, which manages wheat and sugar imports to the North African country.

The government said the move is being made to manage the overall food security of the country and to the needs of neighbouring and other vulnerable nations. “There is a sudden spike in the global prices of wheat arising out of many factors, as a result of which the food security of India, neighbouring and other vulnerable countries is at risk,” said the Ministry in its notification.