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LATEST NEWS UPDATES | India’s wheat ban knee-jerk reaction; could prove costly for farmers -Shagun

India’s wheat ban knee-jerk reaction; could prove costly for farmers -Shagun

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published Published on May 14, 2022   modified Modified on May 15, 2022

-Down to Earth

The full impact of the wheat ban on farmers will be known only in the next few days, say experts

India’s sudden decision to ban wheat exports with immediate effect citing food security may prove costly for its farmers. Many of them have held back their crop in the hopes of getting higher prices in the coming weeks.

The impact of this decision is already being seen in wheat mandis (wholesale markets), which have seen a fall of Rs 50-100 per quintal on average since the morning of May 14, 2022.

“There is some panic after this notification. In mandis in Indore and Bihar, the wheat price went down by Rs 100 after the order. Traders have also slowed their buying activity. The milled quality wheat in Indore’s mandis was Rs 2,225 per quintal yesterday (May 13) and today (May 14) was sold at Rs 2,100 per quintal. This is a fall of Rs 125 per quintal. A Rs 50-100 fall has been recorded on average,” Shlok Joshi from Mandi Central, an agriculture commodity information platform, said.

Wheat prices in the private market have been ruling much above the MSP (minimum support price) of Rs 2,015 per quintal and farmers across the major wheat-producing states of Punjab, Madhya Pradesh, Haryana, and Uttar Pradesh have been stocking their harvest and bringing it in instalments in the hope that wheat prices will keep on increasing in the coming days.

Experts called the wheat ban a knee jerk reaction by the Union government. They said this was especially because just a day before this order, on May 12, the government had stated it would send trade delegations to Morocco, Tunisia, Indonesia, the Philippines, Thailand, Vietnam, Turkey, Algeria and Lebanon for exploring possibilities of boosting wheat exports from India.

India had earlier hoped to export 10 million tonnes of wheat and capture the global market made available after the Russian invasion of Ukraine. It had forecast a record output of 111 million tonnes. The sudden decision comes on the heels of an expected sharp fall in government wheat stocks.

The fall has been caused due to low wheat production after high temperatures in March resulted in the shrivelling of wheat grains, thus impacting the quantity of the crop.

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Down to Earth, 14 May, 2022, https://www.downtoearth.org.in/test/news/india-s-wheat-ban-knee-jerk-reaction-could-prove-costly-for-farmers-82852?fbclid=IwAR3XXQIzcuNoDBU9XUZK6pJp2VR_vWxyDuDpWhIlnzfOAK6Mu6gaQ2oQK-I


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