Government mulling to lift ban on wheat exports
There is good news for the wheat exporters in India.
The government of India is seriously contemplating to repeal the ban on
wheat exports considering the rise in the production of food crops such
as wheat and rice. Nonetheless, it’s good news for the world market too
with wheat prices falling in the global market; however the domestic market continues to reel under rise in food prices.
According to an industry analyst, the exports would benefit farmers. Moreover, increased food production would ensure that farm gate prices don’t dwindle, thereby aiding the farmers sustain the margins.
The recommencement of wheat exports may be seem advantageous to farmers, however, consumers are not very happy about it given that food prices haven’t scaled down on the home turf. It was estimated that food prices would climb down in February 2010, however thing have gone upside down as prices of food gains have been continually rising at a rate of over 17 percent for the last 6 weeks.
For the common man it has become difficult to stomach the fact that despite the hike in the food grains in the local market, the government is mulling over to export wheat. However, the government is yet to arrive at a final decision on this.
According to official figures wheat prices have scaled up by 14 percent for the week. Due to rise in prices, retail consumers are reluctant to buy from the local markets.
Strange in a familiar way, the government stockyards are full with food grains, even then the prices are not falling in the domestic market. The production of food gains without doubt has been adversely affected due to insufficient rains, but it is the uneven distribution of grains that is apparently the cause of the troubles and the worst part being retailers are paying a heavy price for it.
For the records, Government of India had buffer stocks of wheat and rice of 206.23 lakh tonnes (lt) and 256.58 lt by the close of January 2010. And these buffer stocks are more than double the requirement under the buffer stock norms
The basic food grains meant for consumption are left to decay due to lack of storage facilities.
According to an industry analyst, the exports would benefit farmers. Moreover, increased food production would ensure that farm gate prices don’t dwindle, thereby aiding the farmers sustain the margins.
The recommencement of wheat exports may be seem advantageous to farmers, however, consumers are not very happy about it given that food prices haven’t scaled down on the home turf. It was estimated that food prices would climb down in February 2010, however thing have gone upside down as prices of food gains have been continually rising at a rate of over 17 percent for the last 6 weeks.
For the common man it has become difficult to stomach the fact that despite the hike in the food grains in the local market, the government is mulling over to export wheat. However, the government is yet to arrive at a final decision on this.
According to official figures wheat prices have scaled up by 14 percent for the week. Due to rise in prices, retail consumers are reluctant to buy from the local markets.
Strange in a familiar way, the government stockyards are full with food grains, even then the prices are not falling in the domestic market. The production of food gains without doubt has been adversely affected due to insufficient rains, but it is the uneven distribution of grains that is apparently the cause of the troubles and the worst part being retailers are paying a heavy price for it.
For the records, Government of India had buffer stocks of wheat and rice of 206.23 lakh tonnes (lt) and 256.58 lt by the close of January 2010. And these buffer stocks are more than double the requirement under the buffer stock norms
The basic food grains meant for consumption are left to decay due to lack of storage facilities.
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