India banned wheat exports due to lower-than-expected production caused by heatwaves. Wheat production was forecast to be 100 million tonnes instead of the record 111 million tonnes estimated earlier. Government procurement dropped 50% and prices began rising due to export demand from the Russia-Ukraine war. The G7 criticized the ban but India defended it as necessary to ensure affordability and access within India and for neighboring vulnerable countries.
India banned wheat exports due to lower-than-expected production caused by heatwaves. Wheat production was forecast to be 100 million tonnes instead of the record 111 million tonnes estimated earlier. Government procurement dropped 50% and prices began rising due to export demand from the Russia-Ukraine war. The G7 criticized the ban but India defended it as necessary to ensure affordability and access within India and for neighboring vulnerable countries.
India banned wheat exports due to lower-than-expected production caused by heatwaves. Wheat production was forecast to be 100 million tonnes instead of the record 111 million tonnes estimated earlier. Government procurement dropped 50% and prices began rising due to export demand from the Russia-Ukraine war. The G7 criticized the ban but India defended it as necessary to ensure affordability and access within India and for neighboring vulnerable countries.
SUBMITTED TO: DIVYA MAM Why has India imposed a ban on wheat export ?
Five reasons can be attributed to the ban. One,
wheat production this year is feared to be lower than 100 million tonnes (mt) against initial estimates of a record 111.32 mt. Two, procurement by the Food Corporation of India (FCI) dropped by over 50 per cent compared with last year. Three, wheat prices in the country began to increase in the wake of export demand triggered by the Russia-Ukraine war and soaring inflation. Four, a sharp surge in global wheat prices that could have affected Indian consumers and five, fertilizer prices have more than trebled since the Russia-Ukraine war broke out. It will likely lead to lower sowing of wheat across the world and thus, the tight supply situation may continue into 2023. How Heatwave affected wheat production in India The government in February had forecast wheat ? production at 111.32 million tonnes, the sixth straight record crop, but in May, it had cut the forecast to 105 million tonnes. Quoting a New Delhi-based dealer with a global trading firm, Reuters reported that a spike in temperatures in mid- March means the wheat crop could instead be around 100 million tonnes or even lower. “The government’s procurement has fallen more than 50 per cent. Spot markets are getting far lower supplies than last year. All these things are indicating lower crop G7 response on India’s decision:- Agriculture ministers from the Group of Seven industrialised nations on Saturday condemned India's decision to ban unapproved wheat exports after the country was hit by a punishing heatwave. "If everyone starts to impose export restrictions or to close markets, that would worsen the crisis," German agriculture minister Cem Ozdemir said at a India’s defense against G7 allegations On 19 May, Union minister V Muraleedharan, speaking on the issue at the 'Global Food Security Call to Action' at the UN Security Council, said, "It is necessary for all of us to adequately appreciate the importance of equity, affordability and accessibility when it comes to food grains. We have already seen to our great cost how these principles were disregarded in the case of COVID-19 vaccines. Open markets must not become an argument to perpetuate inequity and promote discrimination." Conclusion India’s ban on wheat exports has delivered a fresh blow to world markets already reeling from tight supplies due to output issues in traditional export powerhouses Canada, Europe and Australia and snarled supply lines in the war-torn Black Sea area. However, India is a crucial supplier of wheat to its neighbours and the Indian government is committed to ensuring food security of neighbours and vulnerable countries.