BackCentre may continue curbs on wheat export
Output of wheat, to be harvested in March, is expected to be a record 110-111 million tonnes (2023-24) on the back of higher acreage
PremiumNew Delhi: India may extend its ban on wheat exports beyond March and continue to curb shipments of non-premium rice to tamp down local prices while expanding purchases of cereal stocks that are at their lowest in five years, two people familiar with the development said.
The government banned wheat export in May 2022 as shipments quickened due to the Ukraine war at a time when total production fell 2.5% due to a heatwave, straining domestic availability.
An inter-ministerial decision on whether to re-open exports is due in March but recent inputs of supplies, prices, availability and output scenarios point to a likely continuation of restrictions on cereal trade, both the people cited above said.
“There is a need to focus on procurement. The geopolitical situation is uncertain and the country’s own food security is the first priority," one of the persons said.
Domestic wheat prices rose to an all-time high of ₹32,500 per tonne in January, way above the government-set minimum support price of ₹21,250.
Output of wheat, to be harvested in March, is expected to be a record 110-111 million tonnes (2023-24) on the back of higher acreage, according to official projections. However, the weather has to be conducive throughout. “Inputs from the India Meteorological Department will be taken into account," the second official said. Prospects of an early summer can’t be ruled out as the country faces increasing heatwaves due to climate change. During February 2023, minimum temperatures in wheat-growing northwest India is “most likely to be above normal", the IMD said in a bulletin on 1 February.
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