On 13th May, 2022, the government banned all private wheat exports with immediate effect. The rationale behind the ban was:
Heat Wave: The decision came amid widespread loss of yield due to abnormal heat waves in the major wheat-growing states of Punjab, Haryana, Uttar Pradesh and Madhya Pradesh.
Large parts of the crop had shrivelled due to the heat and, in certain cases, had become unfit for human consumption.
High Inflation: Rising food and energy prices have pushed India’s annual retail inflation near an eight-year high at 7.79 per cent in April. Due to rising inflation, wheat prices in India have risen to record highs, in some spot markets hitting 25,000 rupees per tonne, well above the government’s minimum support price of 20,150 rupees.
Russia-Ukraine Crisis: Wheat prices in the country began to increase in the wake of export demand triggered by the Russia-Ukraine war and soaring inflation.
Further, procurement by the Food Corporation of India (FCI) dropped by over 50 per cent compared with last year.
Food Security: Owing to the current situation, India had to ensure food for its citizens first.
China Factor: There is also China factor behind the sudden decision to ban the export of wheat. Considering the strategic objectives, the Government of India has taken preventive steps to stop China from hoarding Indian stock and has decided to ban wheat export.
