Union Minister Piyush Goyal on Wednesday said there are no immediate plans to lift a ban on wheat exports, but India will continue to export the agri commodity to those countries which are in serious need, are friendly and have the letter of credit.
Speaking with news agency Reuters at the World Economic Forum in Davos, Goyal said, “Currently there’s instability in the world, if we were to do that (lift the ban), it would only help black marketeers, hoarders and speculators. Neither will it help the really vulnerable and needy countries.”
The smarter way to do it is through the government to government route, by which affordable wheat grain to the most vulnerable poor can be given, he said.
Earlier at a WEF session there, the minister said the Indian government will continue to export the agri commodity to those countries which are in serious need, are friendly and have the letter of credit.
India banned wheat exports on May 13 to check price rise of the commodity in the domestic market amid apprehensions of a shortage of the crop in the country after a severe heat wave impacted its production.
“India will continue to allow wheat export for countries which are in serious need, are friendly and have the letter of credit,” said Goyal.
Goyal highlighted that while 7%-8% rise in wheat production was expected this year, severe heat waves led to early harvest and loss of production. “Given this situation, what we are producing is about enough for domestic consumption.”
India was never a traditional player in the international wheat market and export of wheat only began about two years ago, the minister said, adding that last year seven lakh tonnes wheat was exported and majority was done within the last two months when the war between Russia-Ukraine developed.
“India’s wheat exports are less than 1% of world trade and our export regulation should not affect global markets. We continue to allow exports to vulnerable countries and neighbours,” the minister said.
Meanwhile, International Monetary Fund chief Kristalina Georgieva has urged India to reconsider its ban on wheat exports “as soon as possible”.
Speaking to NDTV at Davos, the IMF chief said, “I do have an appreciation for the fact that India needs to feed nearly 1.35 billion people and I do have appreciation for the heatwave that has reduced agricultural productivity, but I would beg India to reconsider as soon as possible because the more countries step into export restrictions, the more others would be tempted to do so and we would end up as a global community less equipped to deal with the crisis.”
