India's Wheat Export Ban Won't Affect Global Markets, Says Piyush Goyal; Know Details

India’s wheat export regulations will not affect the global markets, India’s Minister of Commerce and Industry Piyush Goyal has said recently claiming that the country’s wheat exports account for less than 1 per cent of world trade. India had earlier this month imposed a ban on wheat exports after an unprecedented heat wave affected outputs of the grain, and prices in the domestic sector surged to a record high. Since the ban, anxious countries have been putting in requests to lift the decision, as per reports.

However, the country’s minister, Piyush Goyal, denied that the wheat export ban will affect global trade. “India wheat exports are less than 1% of world trade and our export regulation should not affect global markets. We continue to allow exports to vulnerable countries and neighbors,” said the minister at the Davos annual meeting.

India Bans Wheat Exports: Who Will be Affected?

Among the Wheat exporting countries, India ranked 19th in 2020, 35th in 2019, 36th in 2018, 36th in 2017, 37th in 2016, which shows that India has an insignificant share (0.47 per cent) while seven countries, including Russia, US, Canada and France, have the largest share in the overall quantity of wheat export in the past five years. A negotiation based approach instead of conflict would have prevented removal of nearly a quarter of wheat exports from Russia and Ukraine.

Still, after the conflict between Russia and Ukraine began on February 24 this year, India has exported Wheat worth $177 million and $ 473 million in March and April this year respectively, despite facing challenges of low wheat production as a result of extreme heat wave that enveloped the northern part of the country that caused shrivelled grains and resultant drop in yield per acre.

The Directorate General of Foreign Trade (DGDT) in a notification dated May 13 had said that the wheat export ban was imposed due to a sudden rise in the price of the food grain in the global market, and was exercised as part of measures to control rising domestic prices. In the order, the government also said the wheat export ban was put into effect to ensure overall food security. However, this would not apply in cases where prior commitments have been made by private trade through Letter of Credit, where permission is granted by the government to other countries to meet their food security needs.

Even as the wheat export ban is aimed at managing overall food security situation in India and to support the needs of neighboring and vulnerable countries, many nations have called out the move. International Monetary Fund (IMF) chief Kristalina Georgieva has urged India to reconsider it saying that the nation could play a key part in global food security.

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