Indian Wheat Exports incredibly doubled to $ 1.48 Billion during April to September 2022-23 which is much higher when compared with previous year which is around $ 630 Million.
Well, Do You Remember Government had Restricted Wheat Exports ?
Previously Indian Government had to Put restrictions on Wheat Exports because of following reasons
- Price Rise in Domestic Market after Russia invade Ukraine.
- Record Shattering Heat Wave. Sudden Rise in Temperature forced Government to Rethink its Exports targets and impose restrictions for fulfilling Domestic Needs first.
- However countries who had already signed the deal were promised to get their agreement honoured. Many Countries had condemned and criticized India’s decision but India Justified its decision stating it as a calculative measure to keep domestic prices in control.
- So primary reason for Restrictions was more because of inflation and avoiding hoarding of an essential food item.
Impact of the Ban
- The Ukraine-Russia war has led to a slump in wheat production from a region known as the world’s bread basket. Russia and Ukraine together account for 25% of the world’s wheat exports. It has led to hike in prices of wheat and supply side glitches.
- India is the world’s second largest wheat producer and one of its biggest consumers. When the government decided to ban wheat exports in the face of climbing prices, there were many protests from the international community.
- In Asia, except for Australia and India, most other economies depend on imported wheat for domestic consumption and are at risk from higher wheat prices globally, even if they do not directly import from India.
What is the significance of Wheat Exports For India
- Forex Income : Wheat Exports is an opportunity to earn foreign income for India. Also the languishing stocks of wheat in FCI Godown will get completed.
- Goodwill Image of India: India by exporting wheat to needy and vulnerable countries can strengthen its ties with countries with whom it had see-saw relations and will help to normalize the ties.
- Diverse Opportunities: The opportunities included the export of food grain such as wheat and the possibility of manufactured goods being exported to destinations for which supplies had become unreliable.
- Cost Competitiveness: While there has been a surge in global prices, India’s wheat rates are relatively competitive.
- Diversify Export Basket: It will help India to have trade relations with those countries with whom it had negligible or low trade.
Imports Increased Despite Restrictions
- The country’s Wheat Exports doubled to USD 1.48 billion during April-September 2022-23 as compared to the year ago period. Now Though Government had banned Wheat exports, some shipments were allowed to meet countries were allowed to meet their food security needs.
- Wheat Exports rose to USD 1487 million. The major reason for such disruptions is Russia Ukraine War.
- Exports of Agriculture and processed food rose 25 percent during the six month period of this fiscal year.
- The overall export of Agriculture and Processed Food Export Development Authority products increased to USD 13.77 billion in April-September 2022 from USD 11.05 billion in the same period ago.
- For 2022-23 an export target of USD 23.56 billion has been fixed by APEDA and export of USD 13.77 billion has already been achieved in the six month period.
- Government has also taken several initiatives to promote products that have registered geographical indications (GI) in India by organizing virtual Buyer Seller Meets on agricultural and food products with the United Arab Emirates and GI products, including handicrafts with the USA.
- As per the DGCI&S data, the country’s agricultural products exports had grown by 19.92 percent in the latest FY of 2022 to touch USD 50.21 billion. The growth rate is significant as it is over and above the growth of 17.66 percent at USD 41.87 billion achieved in the previous FY 2020-21 and has been accomplished despite unprecedented logistical challenges in the form of high freight rates and container shortages.