In a notification released on 13 May 2022, the Directorate General of Foreign Trade (DGFT) amended the export policy of wheat with immediate effect. As a result of sudden spike in global prices of wheat, DGFT under the Department of Commerce, Ministry of Commerce & Industry, prohibited export of Dhurum and other varieties of wheat. Food security in India is given the top most priority by the Union Government.
The notification mentions two conditions for the shipment of wheat.
- Irrevocable letter of credit issued on or before 13 May 2022 or
- On the basis of permission granted by the Government to meet the food securities of other countries.
India is the second largest producer of wheat in the world. India exported about 70 lakhs tonnes of wheat in the year 2021-22. Bangladesh is India’s largest buyer of wheat. About 50% of the exports are contributed by Bangladesh.
Global wheat prices rised sharply due to War in Ukraine. Ukraine amounts to 12% of global supply of wheat.
The reason for ban on wheat exports is to protect the food security of our citizens and ensure adequate food supply to the public distribution system & also ensure that we are able to direct food supplies to vulnerable food-deficit countries: Commerce Secretary BVR SubrahmanyamANI