PIB | 12 Jun, 2022
government's move to restrict wheat exports last month has been
primarily focussed on meeting domestic demand while protecting the
farmers’ income, said M Angamuthu, Chairman, APEDA on Saturday.
Angamuthu said India has kept its wheat export options open for those
developing countries to meet their food security needs after restriction
on shipment of wheat was announced last month. Requests from several
countries for importing wheat from India are being processed at the
year, wheat farmers have been immensely benefited in terms of
procurement by the government’s agencies at Minimum Support Price (MSP)
while a significant chunk of commodity has been sold to private trade at
much above MSP.
decision to ban wheat export was taken to ensure the availability of
wheat for the domestic supply chain. Sudden spurt in exports in April
created concern over domestic price stability and supply that prompted
the government to take the ‘regulatory’ measure like restricting wheat
global wheat market is currently volatile at present and prices remain
elevated, owing to the shortage caused by the Russia-Ukraine conflict.
the interest of farmers as the top priority, the government allowed
them to sell their wheat at higher prices at above MSP to private
traders across several mandis besides procuring wheat at MSP across all
the key grain growing states including Punjab, Haryana, Uttar Pradesh,
Madhya Pradesh and Rajasthan.
remuneration to farmers did not result in higher wheat prices for
consumers due to administrative measures like wheat export regulations
and more availability of wheat for domestic supply chain, said Angamuthu.
Centre has been quite prudent in balancing the interest of the farmers
and consumers in one go. The objective of Government of India's policy
is that farmers could reap higher remuneration for their produce and the
decision of the Centre helped a majority of farmers.
has been reported that during the current Rabi marketing season
(2022-23), the farmers sold their produce at an average rate of Rs 2150
per quintal against the MSP of Rs 2015.
putting restrictions on wheat exports on May 13, the Commerce Ministry
had clearly stated that the export of wheat would be open under the
government-to-government contract and to any other vulnerable country
facing a food crisis.
Minister of Commerce and Industry, Consumer Affairs and Food &
Public Distribution, Shri Piyush Goyal recently said that India
traditionally has not been an exporter of grain. “Our farmers toiled and
ushered in the green revolution and India's production of wheat has
been primarily for the consumption of its own population,” said Goyal at the World Economic Forum in Davos.
though India is the world’s second-biggest wheat producer, India has
been relatively a marginal player in global wheat trade while the
country has a share of more than 45% in the global trade of rice. By
restricting wheat exports, the government chose to protect food security
considering inflation concerns.
to estimates by the Directorate General of Foreign Trade, India has
exported a record 7 million tonne (MT) of wheat in 2021-22 which is
valued at $ 2.05 billion. Out of the total shipment around 50% of wheat
was exported to Bangladesh in the last fiscal.
had been a relatively marginal player in global wheat trade until
2020-21. India could export only about 0.2 MT and 2 MT of wheat in
2019-20 and 2020-21 respectively.
Government had regulated wheat export from May 13, 2022 which changed
the market dynamics, preventing speculative wheat trading and cooled
down the inflationary trend of the price of wheat and products made out
of it in the domestic market.
ensure that farmers with surplus wheat are not adversely affected on
account of exports regulation, the government extended the procurement
season. This extension facilitated those farmers, who had not
participated in public procurement earlier but were keeping the wheat
stocks with them, to come to purchase centres for selling wheat to Food
Corporation of India and State procuring agencies.
order to mitigate sufferings of farmers of Punjab and Haryana due to a
fall in yield of wheat crop on account of early onset of summer and
untimely heat wave and to boost procurement for the central pool, GOI
relaxed permissible limit of shrivelled grains from 6% to 18% for Punjab