Confirming that there is no crisis in wheat supply in the country, Commerce Secretary BVR Subramaniam on Saturday said the government’s decision to ban wheat exports would help control rising domestic prices and meet the food needs of India’s neighbors and weaker countries.
The government immediately banned the export of wheat. However, Exportable Credit Letter (LOC) issued for export invoice on or before the date of this notification will be approved.
Subramanian says the decision was made at the right time.
“There is no dramatic decline in production. I don’t think there is a crisis that needs to be imagined. Adequate food is available in government stocks and private stocks, ”he said while addressing a joint press briefing with opponents of the Food and Agriculture Department.
Explaining the rationale behind the decision, the Commerce Secretary said the primary goal was to “examine inflation”.
“So, what is the purpose of this order? This is what it is doing in the name of sanctions – we are running the wheat business in a certain direction. We do not want wheat to move randomly to places where it can only be stored or where it cannot be used for the purpose for which we hope it will be used, ”said Subrahmanyam.
Efforts have also been made to ensure adequate food stocks within the country.
“At the end of the day, food is a very sensitive item for every country because it affects everyone – poor, middle and rich,” he said, adding that in some parts of the country the price of wheat flour has risen almost. 40 percent.
The government is also committed to ensuring food security in neighboring and at-risk countries.
“So, we have left the windows open for (our) neighbors. We also keep the window open for a large number of vulnerable countries if their governments make such requests, “he added.
The Secretary highlighted that the country exported 7 million tons of wheat in the last financial year, of which about 50 percent was sent to Bangladesh.
Talking about the current financial year 2022-23, he said that an estimated 4.3 million tonnes of wheat has been contracted so far.
Of this, 1.2 million tonnes have already been exported in April and May and another 1.1 million tonnes are expected to be shipped, he said, adding, India’s credibility as a supplier has been maintained. “
He added that the government may reconsider its decision if the price situation improves.