Flour millers’ association RFMFI on Saturday welcomed the government’s decision to ban wheat exports, saying it would prevent “unnecessary panic” in the market over domestic supplies and help control inflation. Anjani Agarwal, president of the Roller Flower Millers Federation of India (RFMFI), said the association had written to the government to regulate exports. “At this stage it is a very good decision of the government, as it will prevent unnecessary panic in the country over the supply and price of wheat.” He said wheat production is likely to decline by 95-98 million tonnes in the 2021-22 crop year ending June.
“If exports are not banned, the country will have to import wheat in a few months,” Agarwal said. He said wheat and flour prices would now remain stable. The price of flour (loose) is 26-28 rupees per kg, whereas the price of packaged flour was 28-30 rupees per kg.
“The price of flour could be 40 rupees per kg or more. Prices will stabilize now, ”he said, justifying the government’s decision. According to an official notification, India has banned wheat exports with immediate effect as part of increasing domestic price control measures. However, the export shipment for which the Irresistible Credit Letter (LOC) has been issued will be allowed on or before the date of this notification, the Directorate General of Foreign Trade (DGFT) said in a notification dated 13 May. DGFT said.
The government has revised its wheat production estimate to 105 million tonnes, down 5.7 per cent from the 2021-22 crop year ending in June, from the previous estimate of 111.32 million tonnes, as crop productivity has been affected by early onset. In the summer year 2020-21 (July-June), India’s wheat production was 109.59 million tonnes.
In the last financial year, the country exported 6 million tons of wheat. India wanted to export 10 million tonnes of wheat this fiscal year due to rising global demand amid the war between Russia and Ukraine.