The Indian government may soon allow export of 5,00,000 tonnes of organic flour. The decision will be the first major relaxation in restrictions on exports of wheat and its products in more than three years. This step has been taken at a time when wheat procurement in the country is going on at a good pace. Inflation is very low (0.3%), and buffer stocks are also adequate. Due to these factors, the government is deciding to gradually ease export restrictions. Business Today gave this information quoting sources.
Wheat procurement for the 2024-25 Rabi marketing season has reached 29.9 million tonnes as of June 30. This is the highest in the last three years. This is close to the government’s target of 31 million tonnes. The Food Ministry is considering lifting the ban on export of wheat and its products, such as atta, maida and semolina. This is because the wheat crop this year is expected to be very good and the monsoon is expected to be the best in the next five years.
Record wheat production forecast
The agriculture ministry has already projected a record wheat production of 117.5 million tonnes for the period July 2024 to June 2025. This has increased confidence regarding the availability of wheat in the country. Before the export ban in 2022, India’s wheat exports had reached a record $2.12 billion. Allowing organic wheat exports could be the first step towards a phased reopening of India’s wheat-based exports.
the world will heave a sigh of relief
Analysts say while this may be a small start, it could lead to an improvement in global supply, especially for countries in Asia, Africa and the Middle East that depend on wheat imports. Additionally, it will enable Indian mills and processors to take advantage of the strong international demand for specialty and organic grain products. This step of the government is good news for the farmers and exporters of the country and it is also expected to boost the country’s economy.