Wheat production has been less than expected due to early arrival of summer season in the country. The prices of flour have increased for some time, apart from this, the prices of products like bread, biscuits made from wheat have also increased. At the same time, due to the war between Ukraine and Russia, the supply chain of wheat across the world was affected and the Indian government is talking about getting the benefit of it to Indian farmers. The government has said to increase exports at such a time. However, experts believe that the government should take some caution and fix the upper limit of exports.
How India itself can come in trouble
Experts believe that in a country like India, there should always be a surplus stock of food grains and private players should not get much discount so that they start setting the market prices. Sudhir Panwar, a former member of the Uttar Pradesh Planning Commission, told The Tribune, “The matter of concern is that the prices are rising in the domestic market and the government has no mechanism to reduce it. Production has come down and there will be no procurement before the next season. These things should be kept in mind before allowing exports. Devender Sharma, an expert on agriculture, says that in the last four years, the price of wheat has increased by only 9 per cent, but the price of flour has increased by 42 per cent.
Why is there a demand to fix the export limit?
He says that the Indian government should be careful about the export policy. We can see that there is no stock of wheat in the international market. In such a situation, India should think that we should not get into trouble by exporting that then we have to ask from other countries. In fact, the war between Ukraine and Russia has affected the entire supply chain. Ukraine is one of the world’s largest wheat exporting countries and it has come to a standstill due to the attack. In such a situation, India’s export is at its highest level and can go up to 21 metric tonnes. Due to this, experts have expressed the possibility of shortage of wheat in the domestic market itself. Experts say that the government should fix an export limit of 12 metric tonnes.
Exported 1.4 metric tonnes of wheat in April itself
According to the data of agencies, India has exported 1.4 metric tonnes of wheat in the month of April alone. In fact, the government believes that farmers will benefit from private procurement and exports. But experts hold the opposite opinion. Devender Sharma reminds of 2005-06 that then the government had given permission to the traders to purchase wheat on a large scale. Due to this he stocked so much that there was a shortage of wheat to distribute among the poor and sell in the market. To contain the prices, the government had to import 7.1 metric tonnes of wheat in the next two years.
Wheat stock in FCI godowns decreased compared to last year
It is worth noting that the stock of wheat in FCI godowns had decreased in April as compared to last year, that too when the crop has arrived. In such a situation, there is an apprehension that if the corporate buys wheat on a large scale, then the prices will also be fixed the same. The average price of flour in April was Rs 32 per kg, but at some places it has also been sold for Rs 37 to 38.