The Government of India (GOI) is not considering any proposal to lift the export curbs on wheat, rice, and sugar, Union Minister for Commerce Piyush Goyal said on Saturday. The minister underlined that there is “no plan or need” to import wheat and sugar. The remarks come as the government imposed a ban on the exports of essential commodities to control their price in the domestic market.
India implemented restrictive measures, including the prohibition of wheat exports in May 2022, the cessation of non-basmati rice exports starting from July 2023, and the continuation of restrictions on sugar exports beyond October 2023.
"There is no proposal as of now to remove export restrictions on wheat, rice, and sugar. And India will not import wheat and sugar," Piyush Goyal told reporters.
The minister mentioned that the government is helping the friendly nations with their food security needs and exported rice to countries like Indonesia, Senegal, and Gambia.
The economists have been divided over the government's move to curb the exports with some welcoming the move at a time when the central bank is struggling to keep the inflation below its tolerance band. The others called it a “knee-jerk” reaction and opined that the government should formulate a rational trade policy keeping in mind both consumers and producers.
India's retail inflation hit 4-month high of 5.69% in December 2023
Despite government efforts at managing the prices of essential commodities, the retail inflation of India touched a 4-month high of 5.69% in December 2023 as per the data released by data released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) on Friday.
This is the second consecutive month when the inflation rate hovered above the 4% mark in the medium-term inflation target set by the Reserve Bank of India (RBI). In November 2023, India's retail inflation was recorded at 5.55%.
In a comforting signal, the core inflation (inflation excluding fuel and food prices) declined below 4% during December and was recorded at 3.89%.
