New Delhi: The center decided to postpone the cancellation of the ban on wheat and wheat product and prefer to stability of prices during the upcoming festival and election season, according to two people who are familiar with this matter.
With the elections of the Assembly in the key states-Bihar, Assam, Kerala, Tamil Nadu, West Bengal and Puduchherry-Cena clamps like Atta (wheat flour), Maida (refined wheat flour) and Suji (Semolina) has become a political priority.
Despite the objectives of the award of contracts, the government cares carefully to avoid induction of retail inflation of food, which is currently the lowest, and gives opposition parties political ammunition before the elections.
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The expected increase in the ceremonial demand in the coming months further strengthened the decision to maintain the ban on exports.
In April, food inflation increased to 1.78% year -on -year, from 2.69% in March and the lowest since October 2021. Although it slows, it remains a key contributor to the overall inflation.
Wheat exports were banned in May 2022 after domestic production and a sharp decrease in public procurement for the central pool. Since then, limited shipments have continued for humanitarian and diplomatic reasons.
Wheat production is expected to hit a record 115.3 million tonnes in 2024-25, 2% of 113.3 million tonnes in the previous year, according to the second estimates of the Ministry of Agriculture.
The government has indicated that the ban on exports will remain established to ensure that domestic prices remain at a reasonable level, especially at the time of the festival when there is demand. “Although there is no immediate plan to raise the ban, the situation will be monitored,” one of the above two people said.
The question sent to the Ministry of Agriculture on Monday was unanswered.
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The Indian milling industry urged the government to allow unlimited exports of wheat products without permission. Wheat exports have been banned since 2022, although imports are permitted in preliminary authors for reexport as flour within 180 days.
The center imposed a stock restriction in June 2024, which was later revised in September to maintain wheat and prices stable for consumers. Despite this effort, wheat prices have increased sharply to a record maximum £32,000 per ton in Delhi in November 2024, powered by strong demand and limited supplies. The stock limits remained in force until 31. March 2025 and merchants and mills are now obliged to report their wheat stock every Friday.
Meanwhile, favorable weather and the absence of natural calamities supported the planned increase in production this year.
“There is no doubt that the crop is good and public procurement was also significant. We hope our granaries will be full in a few months. We still have to consider domestic demand and supply.
“Prices are stable right now and any change in policy could interrupt this dynamics and lead to unnecessary insecurity or price increase,” the person said.
Since Monday, wheat orders have achieved 29.3 million tonnes, almost 31.2 million tonnes. This gives the government a comfortable position to fulfill the legal obligations for food safety and interfere with the market if necessary.
However, some experts demanded a more nuances approach.
“The ban on wheat products should be immediately canceled. It should not be saved first,” said Siraj Hussain, former Minister of Agriculture. “The ban on exports of wheat must continue. I don’t think we have excess.”
Before the ban on India, wheat and wheat products were exported mainly to South Asia, Western Asia and Africa. Among the best buyers were Bangladesh, Indonesia, the United Arab Emirates, Sri Lanka, Kenya, Djiboutism and Somalia. Nepal, Bhutan and Persian nations as Oman and Qatar were key importers of processed wheat products.
Since the beginning, many of these countries have diversified resources to Russia, Australia, USA, Ukraine and Argentina.
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India took similar steps with the export of rice to reduce inflation.
In September 2022, it banned broken exports of rice, white rice in July 2023, and in August 2023 after the abolition of export rice at the end of September, however, in October 2024 imposed 20% obligation for parboiled rice. In October 2024.
(Tagstotranslate) Wheat Export Ban (T) India Wheat Exports (T) Wheat Prices (T) Wheat Production 2024 (T) Wheat Procurement India (T) Food Inflation India (T) Wheat Stock Limits 2025 (T) Wheat Supply India (T) Wheat Export Policy (T) Food Security India (T) Wheat Market Regulation (T)
