Ahmedabad: Government’s big decision, ban on export of wheat amid rising prices

So far this year, the prices of flour have increased by about 13 percent as compared to last year.

The central government has taken a big decision amid rising wheat prices. On Saturday, the government banned the export of wheat with immediate effect. Wheat has been kept in the restricted category. The government has said that this step has been taken keeping in mind the food security of the country. It was also necessary to do this in order to support neighboring countries and poor countries. Meanwhile, let us tell you that the countries which have already got permission to export it, they will continue to export it.

The Directorate General of Foreign Trade (DGFT) in a notification issued on May 13 said that export of goods for which Letters of Credit (LoC) have been issued on or before the date of notification will be allowed. Due to the ongoing war between Russia and Ukraine, there has been a sharp jump in wheat prices across the world. In India too, local wheat prices have increased. The government procurement process is very slow in many states. On the other hand, the procurement of wheat has been much less than the target. The reason for this is that farmers are getting more than the Minimum Support Price (MSP) in the market.

Significantly, due to the Russo-Ukraine war, the price of wheat in the international market has increased by more than 40 percent, due to which the export of wheat has increased. The prices of wheat and wheat flour have also jumped amid rising demand at the local level. According to a report, the prices of flour have increased by about 13 percent so far this year as compared to last year. Apart from banning the export of wheat with immediate effect, DGFT said in another notice that the export policy of double seeds has also been changed and kept in a limited range with immediate effect. It is noteworthy that earlier the export of onion seeds was also limited.