https://sputnikglobe.com/20220825/india-puts-wheat-flour-exports-restrictions-in-place-to-curb-rising-domestic-prices-1099979553.html
India Puts Wheat Flour Exports Restrictions in Place to Curb Rising Domestic Prices
India Puts Wheat Flour Exports Restrictions in Place to Curb Rising Domestic Prices
Sputnik International
The country of 1.3 billion people has been witnessing double-digit food inflation for months, prompting the Reserve Bank of India to hike the interest rate by... 25.08.2022, Sputnik International
2022-08-25T12:23+0000
2022-08-25T12:23+0000
2022-08-25T12:23+0000
india
wheat
prime minister's office of india
narendra modi
exports
ukraine
inflation
food crisis
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India’s Cabinet Committee on Economic Affairs (CCEA) imposed a ban on wheat flour exports to control rising prices in the domestic market ahead of the three-month festival season, which begins next month.The government data suggests that wheat flour exports from India have registered 200 percent growth during April-July 2022 compared to the corresponding period in 2021.The increased demand for wheat flour in the international market led to a significant rise in the price of wheat flour in the domestic market, the government reckoned.Wheat prices jumped to a record INR 24,453 ($306) per ton last week, 16 percent higher than in May, when the government restricted exports to ensure the "food security" of the billion plus people of the country.The Indian government assessed that the Ukrainian conflict had caused disruptions to the global wheat supply chain, resulting in massive demand for Indian wheat among international traders.Russia and Ukraine are both major wheat exporters, accounting for around 25 percent of the global wheat trade.The banning of wheat flour exports comes even though the Department of Food & Public Distribution claimed that country has sufficient stocks to meet domestic requirements and enough stock for public distribution.The World Bank forecasts that wheat prices will increase by more than 40 percent this year, and could reach an all-time high in nominal terms.
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Rishikesh Kumar
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india, wheat, prime minister's office of india, narendra modi, exports, ukraine, inflation, food crisis
india, wheat, prime minister's office of india, narendra modi, exports, ukraine, inflation, food crisis
India Puts Wheat Flour Exports Restrictions in Place to Curb Rising Domestic Prices
The country of 1.3 billion people has been witnessing double-digit food inflation for months, prompting the Reserve Bank of India to hike the interest rate by 1.4% three consecutive times. The government restricted the export of wheat in May this year despite facing immense pressure from the West amid record inflation in the commodities market.
India’s Cabinet Committee on Economic Affairs (CCEA) imposed a ban on wheat flour exports to control rising prices in the domestic market ahead of the three-month festival season, which begins next month.
“The approval will now allow a restriction on the export of wheat flour, which will ensure a curb on rising prices of wheat flour and ensure the food security of the most vulnerable sections of society,” a government statement read.
The government data suggests that wheat flour exports from India have registered 200 percent growth during April-July 2022 compared to the corresponding period in 2021.
The
increased demand for wheat flour in the international market led to a significant rise in the price of wheat flour in the domestic market, the government reckoned.
Wheat prices jumped to a record INR 24,453 ($306) per ton last week, 16 percent higher than in May, when the government restricted exports to ensure the "food security" of the billion plus people of the country.
The Indian government assessed that the Ukrainian conflict had caused disruptions to the global wheat supply chain, resulting in massive demand for Indian
wheat among international traders.Russia and Ukraine are both major wheat exporters, accounting for around 25 percent of the global wheat trade.
The banning of wheat flour exports comes even though the Department of Food & Public Distribution claimed that country has sufficient stocks to meet domestic requirements and enough stock for public distribution.
The World Bank forecasts that wheat prices will increase by more than 40 percent this year, and could reach an all-time high in nominal terms.
