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Within hours of curbs, domestic traders claim wheat prices are softening

Within hours of curbs, domestic traders declare wheat costs are softening

BRAND-NEW DELHI: The Centre on Saturday put numerous measures including stringent controls on wheat exports. However, food secretary Sudhanshu Pandey stated, “Worldwide need was rising and various nations were putting constraints. Beliefs were driving rates. We are confident now the beliefs will lower the costs.”
Within hours of the measures being revealed, domestic traders declared that costs had started softening. Costs visited Rs 100-150 a quintal throughout several states, according to the Roller Flour Millers’ Federation of India. “We are directing the wheat trade in a particular direction. We do not want the wheat to go in an uncontrolled manner to locations where it might get just hoarded or where it might not be utilized to the purpose which we are hoping it would be utilized for,” commerce secretary BVR Subrahmanyam stated, while describing the reasoning for putting exports under the “restricted” classification.
On Friday, TOI was the first to report about the proposed export curbs following discussions in a ministerial panel headed by home minister Amit Shah.
This year, with private traders entering the market in a huge way, federal government procurement for the food security program is expected to be around 57% lower at 185 lakh tonnes, the most affordable in a minimum of 13 years. Greater exports, determined as a major focus simply a month ago, led to lower procurement by the government, together with crop damage due to the early beginning of summer season adding to the supply restrictions globally.
Pandey, nevertheless, sought to ensure that there were adequate stocks to satisfy domestic requirements. Against the buffer requirement of 75 lakh tonnes, stocks at the start of April were approximated at 190 lakh tonnes.
Together with export curbs, the government introduced other steps, even more minimizing wheat allocation to states under the National Food Security Act (NFSA). Earlier, it had lowered the wheat allowance for 11 states by 60% under PM Garib Kalyan Yojna, which is operational till September. On Friday, the food ministry once again revised the allotment of wheat for 10 states under the food security scheme, NFSA. This norm will be applicable till March, 2023. Based on the revised norms, the overall allocation of wheat to these states under NFSA will be 9.4 lakh tonnes per month till March, compared to earlier allotment of 15.4 lakh tonnes, a drop of almost 40%. This will save around 110 lakh tonnes of additional wheat that can be provided with the government in its stocks to satisfy any exigencies.
While the government preserved it had actually not banned export of wheat, a notice by the directorate general of foreign trade stated that shipments out of the nation will be permitted on a government-to-government basis to susceptible and neighbouring countries. In addition, exports for which irrevocable letters of credit have been provided, will be permitted.
Authorities clarified this will permit exports to neighbouring nations such as Bangladesh and Nepal, but consignments to China and Pakistan might not be permitted. In the middle of reports that China was hoarding wheat and other foodgrains due to a spurt in international prices, Subrahmanyam refused to comment on the concern.

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Published at Sat, 14 May 2022 21:33:17 +0000

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