India has no immediate plan to lift wheat export ban: Piyush Goyal
1 min read 25 May 2022, 06:15 PM ISTGoyal at Davos said, India will continue to allow wheat export to countries that are in serious need, are friendly and have a letter of credit.
PremiumCommerce Minister Piyush Goyal on Wednesday said the country has no immediate plans to lift the ban on wheat exports. Goyal cited instability in the world and if India was to lift the ban then he believes this will only help black marketeers, hoarders, and speculators.
Goyal told Reuters that India has no immediate plans to lift a ban on wheat exports, but will continue with deals that are done directly with other governments.
When asked about India's plan to allow private exports to resume, Goyal further told Reuters that currently there's instability in the world, and if we were to do that (lift the ban), it would only help black marketeers, hoarders, and speculators. Neither will it help the really vulnerable and needy countries.
At the World Economic Forum in Davos, Goyal in an interview with Reuters said that the smarter way to do it is through the government to government route, by which we can give affordable wheat grain to the most vulnerable poor.
In a PIB statement today, Goyal at Davos said, India will continue to allow wheat export to countries that are in serious need, are friendly and have a letter of credit.
As per Goyal, while a 7%-8% rise in wheat production was expected this year, severe heat waves led to early harvest and loss of production. He added, “Given this situation, what we are producing is about enough for domestic consumption."
He highlighted that India was never a traditional player in the international wheat market and the export of wheat only began about 2 years ago. He said, last year 7 LMT wheat was exported and the majority was done within the last two months when the war between Russia-Ukraine developed.
“India wheat exports are less than 1% of world trade and our export regulation should not affect global markets. We continue to allow exports to vulnerable countries and neighbours," the Minister said.
Due to the onset of severe heat waves this summer and a sharp rise in global prices, India's wheat prices are in a hot spot. On May 14, to ensure food security in the country, the government announced prohibitions on wheat exports. However, under special conditions, the export of this item will be allowed.
