Through this move, they said, India seeks to ensure fair and proper use of its wheat stocks to meet the needs of the world, especially the most needy countries.
“The ban will curb India’s efforts to stockpile wheat for price manipulation. It will also tackle food inflation,” a source said.
According to industry sources, Chinese traders were trying to manipulate the global market.
Indian wheat will now go to poorer countries, they noted.
According to an official notification, India immediately banned wheat exports as part of increasing domestic price control measures.
However, the export invoice for which 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.
It further clarified that the export of wheat would be allowed by the government to other countries to meet their food security needs and on the basis of permission granted by them at the request of the government.