Tuesday, May 17, 2022

 

                        Sudden Ban of Wheat Exports in India




  • Indian Government has planned to increase wheat exports from 7 million tonnes to 10 million tonnes this financial year (2021-22). Surprisingly, few days back, India imposed an immediate ban on exports of wheat.
  • Reasons behind the Ban: India, world's second largest producer of wheat has banned wheat exports due to:
  1.  Rising global prices due to Russia - Ukraine conflict.
  2. rising domestic prices of wheat
  3. Food security in India
  4. Risk of possible famine in India.
  5. Due to climate change, India recorded its warmest  March and temperature has been consistently crossing 45 degree Celsius everyday in the past few weeks.
  6. As a result, India's own harvest has suffered and the government is already expecting a 5% fall in output from the 109 million tonnes output recorded in 2021.                                                       Statistically, India consumes most of the wheat it produces but markets have been getting lower supplies due to stunting production.                                                                                                 Priortising its own needs first, India decided to ban wheat exports to ensure food security and wisely use its buffer stock of 20 million tonnes.

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