On May 14th, India banned private overseas sales of wheat, the world’s second-biggest producer of the grain after the blazing heatwave condensed output and domestic prices hit records. Global prices surged after the decision. In this situation, India has no plans to lift the ban said commerce minister Piyush Goyal on Wednesday.
Analysts spotted uncertainty and imbalance in the global market of food grains, thus India imposed a ban on wheat export to private overseas sales. If India lifts the ban, only the bootleggers, hustlers, magpies, and opportunists would make money said Goyal when enquired about India’s plan to permit private exports to recommence. In an interview on Wednesday at the Economic Forum in Davos he said that it would be smarter to continue the deals directly with the Government through the Government route, so the grains can be provided at an affordable price to the most susceptible poor or the needy countries.
Goyal at Davos, in a PIB statement, said that India will continue wheat export trade with the countries that are in serious need, friendly, and have a letter of credit. The Minister added that India’s wheat exports are less than 1% of world trade and the export regulation should not affect global markets. Many of the G7 nations that import wheat from India have asked to reconsider the decision over the ban on private overseas sales. It is a “Deep concern” exclaimed U.S. Agriculture Secretary Tom Vilsack.
As per Goyal, a 7% – 8% rise in the production of wheat was expected this year but due to the early heat wave harvest which caused the loss of production and in this situation, India’s wheat production is impartially plentiful for domestic consumption only.
Goyal said that he communicated with the World Trade Organization (WTO) and the International Monetary Fund (IMF) explaining the cause behind India’s wheat export ban.