Wheat Export Ban To Continue in India To Ensure Adequate Supply To Domestic Market

The ban on wheat exports would remain in place because India needs to secure an adequate supply of foodgrain for its domestic market while also keeping inflation under control, Union Minister Piyush Goyal said on Thursday.

He stated that wheat procurement has begun and that the numbers for the first week of purchasing are "very" favourable.

“I could believe that we will have a good harvest despite the unseasonal rains…We do believe that we will have to ensure adequate supplies for the Indian market and once the procurement period is over, we believe that it will be important that inflation is also contained in the country and therefore it is important that the wheat exports continue to remain banned,” the commerce and industry and consumer affairs, food and public distribution minister told reporters here.

He is in town for two days to meet with politicians and business owners in order to strengthen commercial connections between India and Italy.

As part of attempts to curb growing local prices, India, the world's second-largest wheat producer, banned wheat exports in May 2022.

Ashok K Meena, Chairman and Managing Director of the state-owned Food Corporation of India (FCI), has indicated that increased wheat output this year will provide adequate supplies for both government procurement and civilian consumption in the Indian market.

The government has projected a record wheat production of 112.18 million tonnes in the 2023-24 crop year (July-June), as per the second estimate of the agriculture ministry.

On April 1, FCI godowns would have a wheat stock of 84 lakh tonnes.

FCI is the government’s nodal agency that undertakes the procurement and distribution of food grains for the PDS (public distribution system) and welfare schemes.

Furthermore, the Centre has eased quality standards for wheat procurement in Punjab, Chandigarh, Haryana, and Rajasthan in order to prevent distressed sales and protect farmers' interests.

In some sections of these states, the recent untimely rains, hailstorms, and high-velocity wind have harmed the standing wheat crop, which was ready for harvest. These state governments had requested that procurement rules be relaxed.

Wheat procurement is already ongoing in Madhya Pradesh, however it has been delayed in other regions due to late rainfall. Wheat is procured by the state-owned Food Corporation of India (FCI) and state agencies.

“After the field survey, we have relaxed the quality norms for procurement of wheat in Punjab, Chandigarh, Haryana and Rajasthan in order to reduce the hardship of farmers and to avoid the distressed sale of the wheat,” Subodh Kumar Singh, Additional Secretary in the Union Food Ministry, said on March 11.

The Centre has asked these state governments to deduct the imposed value cut from the minimum support price of Rs 2,125 per quintal while making a payment to the farmers.

The government has purchased 13.20 lakh tonnes of wheat till April 10 of the ongoing 2023-24 marketing year (April-March) mostly from Madhya Pradesh. About 1,000 tonnes of wheat has been procured in Punjab, while 88,000 tonnes in Haryana in the same period, as per the food ministry data.

Asked about the lower procurement in Punjab and Haryana, the official said, “The procurement was delayed due to the untimely rains. The arrivals were not huge and therefore the procurement has not been much. However, in the next few days, the procurement of wheat in these two states will pick up.” The Centre aims to procure 34.2 million tonnes of wheat in the ongoing 2023-24 marketing year (April-March), higher than the 19 million tonnes achieved in the previous year.

Last year, wheat procurement declined due to a slight fall in production owing to the heat wave and unseasonal rains. However, this year the production is estimated to reach a record of 112.2 million tonnes.

-With PTI Inputs

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