The Indian government’s move to ban wheat exports may have the opposite effect.
The Indian government’s move to ban wheat exports may have the opposite effect. A report by Nomura said that the ban on exports will put pressure on the increase in the prices of wheat in the global market, which is already increasing due to other factors.
of the Indian government wheat export (Wheat Export) ban on (Ban) The opposite effect of the installation step can be seen. A report by Nomura said that due to ban on exports, the prices of wheat in the global market (Wheat Prices) There will be pressure to increase, which is already increasing for other reasons. He said that before the increase in the prices of wheat, the energy was in the initial stage. (Energy) This was due to higher prices and later Russia-Ukraine war. And the fear of this ban has increased further.
Sonal Verma, chief economist for India and Asia at Nomura, wrote that the impact of the ban on wheat exports is expected to be minimal on India’s domestic inflation. The ban on export is a deliberate step. And this can prevent wheat prices from rising in the domestic market. However, the production of wheat in the domestic market may be affected by the scorching heat. Due to this, the domestic wheat prices are not expected to come down. He said that if India’s ban on wheat increases the prices of things like rice, then there will be pressure on the prices of other food items as well.
India had banned the export of wheat
India had officially banned the export of wheat. Wheat was put in the banned category from May 13. Shipment will be allowed in cases where Letter of Credit (LOC) has been issued before the date of notification. However, the government can allow exports with neighboring and other vulnerable developing countries to meet its food security needs. But those respective governments will have to submit a separate request.
The reason for the ban on export of wheat is also rising inflation. Wholesale inflation in India has increased from 2.26 percent at the beginning of 2022 to 14.55 percent now. Retail inflation also rose to an eight-year high of 7.79 per cent in April, driven by a rise in food and oil prices.