The government is unwilling to lift the 3-year ban on wheat exports due to prevailing food inflation despite high wheat production in the country in the rabi season of 2009-10 .jpg) The government is not willing to remove the 3-year ban on wheat exports despite high production of wheat during 2009-10 rabi season. With the favourable climatic conditions, the production of rabi crops like wheat has witnessed high production. As a result, wheat output has surpassed the amount of buffer stock required.It has been noted that the Food and Agriculture Ministry has decided not to remove the ban on the commodity with continuing food inflation in the domestic market. “With removal of the ban on wheat exports, traders would start exporting large quantity of wheat, thereby leading to shortage of the food grain for domestic consumption, which will in turn raise the prices of wheat,” says Jay Shah, director of Jay International, a mid-sized food grain supplier in Ahmedabad.
However, it must be noted that there is mixed opinion on the issue of 3-year ban on wheat exports. According to Abhijeet Pawar, managing director of Pas Kosmosis Agro Private Limited, a large-sized food grain exporter and supplier in Pune, “Continuing the 3-year ban on wheat exports would not be a good option as it would have a negative impact on exporters, who would lose out on their profit. Therefore, the government should maintain a balance between availability of wheat in the domestic market through the public distribution system so that consumers would get adequate food grains and exporters would also be able to export the commodity.”
Flipsides of high wheat production
High wheat production in 2009-10 may lead to wastage. The proportion between the number of store houses in the country and the quantity of food grains is disproportionate. As a result, food grains like wheat are left in the open plinths, which make them prone to pest attacks.
Therefore, the government should either remove the ban on wheat exports or increase storage capacity in the domestic market. In fact, the government has started providing wheat at cheaper prices to families belonging to the below poverty line category to make proper use of the surplus wheat.
Sabrina Mitchell |
