India

India will not remove the ban on wheat export

India will not remove the ban on wheat export

As European countries have enacted measures to ensure food security, Piyush Goyal, the minister of trade and industry announced on Wednesday.  At the World Economic Forum in Davos,  Goyal defended the May 13 decision to ban wheat exports to ensure price stability and help vulnerable countries and communities. He said he was.

“Today, 22 European countries have export restrictions to protect food security. Different countries had to take special measures for the public good at different times.” Goyal defended India’s wheat export ban.

The minister answered questions in an interactive session, stating that there was a lot of misinformation about India’s decision, and said it had resolved the issue with WTO and  IMF leaders.

 ” Exports of grain from India have traditionally been low. Our farmers have worked and have begun a green revolution, “he said, arguing that India’s wheat production is primarily for consumption by its people.

That year, the heatwave that “shrunk” wheat crops coincided with the war in Ukraine and sent a shock wave to the world wheat market, as Ukraine was the main supplier of wheat to the world market.

  Goyal said the government observed an increase in wheat exports in the first quarter. “The government went to regulate exports after 2 million tonnes of wheat were exported in 40 days.” This sudden increase in exports raises concerns about price stability and domestic supply and prompts the government to take “regulatory” action.

 Minister said that much of the 7 million tons of wheat exported from India last year was exported to Bangladesh, but this time the government has caused market volatility as wheat is directed to the trade hub of the international market. Said there is a possibility. ..

“Not one single person went hungry during the COVID period,” he said. The government’s agricultural and public allocation policies prevented this from happening. India has no immediate plans to lift the wheat export ban, but will continue to trade directly with other governments, Trade Minister Piyush Goyal told Reuters.

 The world’s second-largest wheat producer banned private-sector overseas sales of grain on May 14, after the heatwave hit production and domestic prices hit record highs. After the decision, global wheat prices have risen.

“Currently, the world is volatile. If you do that (lift the ban), it will only serve bootleggers, hoarding, and speculators. It won’t help countries that are vulnerable and in need. “

India

In a statement, he said the smartest way to address this is through a government-to-government partnership, by which we can provide affordable wheat to the poorest members of society.

An interview at the World Economic Forum in Davos on Wednesday. India has been urged to reconsider its decision to ban the sale of wheat abroad by many wheat importing countries, including members of the G7. US Agriculture Secretary Tom Vilsack this month said he was “deeply concerned” about the ban.

Goyal also said he has contacted the World Trade Organization (WTO) and the International Monetary Fund (IMF) to explain the reasons for India’s wheat export ban. 

In April, as the Russo-Ukrainian war dragged on and countries around the world saw their food stocks run dry, Prime Minister Narendra Modi announced that India could feed the world if the Organization of World Trade allows. Then on May 4, Modi reiterated that he wanted to “save the world from hunger”.

But that’s not the case. Instead, 10 days later, India banned wheat exports due to record domestic inflation and a severe heatwave that destroyed crops. The decision has drawn reactions from politicians and world leaders, many of whom have called and urged India to reconsider its wheat export ban.

  On Tuesday, International Monetary Fund (IMF) Director Kristalina Georgieva in Davos begged India to reconsider its ban, saying the country could play an important role in international food security. and global stability, NDTV reported.

“I appreciate the fact that India has to feed almost 1.35 billion people and I appreciate the heatwave that has reduced agricultural productivity, but I urge India to reconsider as soon as possible because as much as possible.

The more countries embark on export restrictions, the more other countries are hit, she told NDTV., Georgieva added:

“Wheat is one of the areas where Ukraine and Russia have been significantly affected by war, so depending on how much India can export and where it is export-oriented it could have a significant impact, especially if exporting to hardest-hit countries like Egypt or Lebanon, where what we see is not only the risk of hunger but also the risk of social unrest and the impact on world stability.

 As India continues its wheat ban, despite pressure from  Western countries, let’s take a closer look at India’s wheat production, its exports, and what countries have to say about the ban. and defend government decisions.

India’s Wheat Reserve

It is important to note that wheat is a major crop in India; more than 1.1 billion people depend on it for food.

The Indian government said on February 18, nearly a month before the recent heatwave, that the country was on track to harvest an all-time high of 111.32 million tonnes of grain, up from 109.59 million tonnes.

According to Reuters, this was the largest harvest in the country’s history. However, according to the government’s admission, the country “is not among the top 10 wheat exporters”.

Government data shows

Within the world’s top 39 wheat exporting countries, India ranks 19th in 2020, 35th in 2019, 36th in 2018 and 2017 and 37th in 2016. This shows that India accounts for a negligible share (0.47%) of wheat exports.

United Nations Food and Agriculture Organization figures show that Russia exported 18.78% of wheat to the world in 2020, followed by the United States (13.16%), Canada 13.15% and Ukraine with 9 0.09%.

Due to extreme heat, India’s wheat crop has suffered irreversible damage, and this year’s production of wheat is expected to be 105 million tonnes.

Countries are not satisfied with India

wheat

 New Delhi’s turn away from wheat has drawn widespread criticism, especially from the G7 countries. “If people start imposing export restrictions or closing markets, that will make the crisis worse,” German Agriculture Minister Cem Ozdemir told AFP.

 Ministers of the G7 countries continued to call on countries around the world not to apply restrictive measures that may affect the commodity market. “We call on India to shoulder its responsibilities as a member of the G20,” added Ozdemir.

The US also called on India on the wheat ban, saying the restrictions would exacerbate the global wheat crisis caused by the war in Ukraine. 

On May 16, US Agriculture Secretary Tom Vilsack expressed “deep concern” about India’s move, which has pushed up already high wheat prices.  Vilsack said India is restricting access to wheat, which he calls “a bad thing right now,” CNBC TV 18 reported.

 US Ambassador Linda Thomas Greenfield also said, “We have seen the report on India’s decision. We encourage countries not to restrict exports as we believe that any restrictions on exports will exacerbate food shortages.

But you have – again, India will be one of the countries participating in our meeting on the Security Council, and we hope that they can,  hear the concerns of other countries. , and that they will reconsider this stance.

 “India’s wheat exports have been particularly strong this year due to the Russia-Ukraine crisis,” Oscar Tjakra,  grains and oilseeds analyst at Rabobank, told CNN Business. He added: “The ban will reduce the world supply of export wheat in 2022 and support world wheat prices.

Defence of India

The Narendra Moderation Center remains adamant about its decision to impose restrictions on wheat exports.

  On May 19, Union Minister V Muraleedharan, speaking on the matter during the call to action for global food security at the United Nations Security Council, said: “We all need it. must fully understand the importance of equity, affordability and accessibility when it comes to food grains.

We have seen the hard way when these principles have been ignored in the case of vaccines. COVD19. The market opening should not become an argument for perpetuating inequality and promoting discrimination.

 Mr Muraleedharan said the Indian government had stopped exporting after noting a spike in global wheat prices that jeopardized the food security of the country, neighbouring countries and other vulnerable countries.  

Additionally, New Delhi points out that India only exports less than 1% of the world’s wheat. Indian Commerce Minister Piyush Goyal reiterated this, stating that, “India has never been a traditional player in the international wheat market”.   

  In India, several officials have reportedly expressed their concern over food waste in other countries.  According to the United Nations Environment Programme’s Food Waste Index 2021, developed countries such as the USA (59), Japan (64), Italy (67), Germany (75) etc waste more food than India as compared to the world at large. In addition, the Indian government announced that wheat shipments registered with the customs department on or before 13 May would be processed.

Food protectionism

wheat

  India does not seem to be the only country that restricts trade in food, as much has been said about its wheat export ban. Countries like Egypt, Turkey, and Kuwait have also implemented export restrictions, sparking concerns about governments enacting so-called “food nationalism.”    On Monday, Malaysian Prime Minister Ismail Sabri Yaakob said the Southeast Asian country would stop exporting up to 3.6 million chickens a month “until prices and domestic production stabilize”.

Palm oil prices have also risen in recent weeks as Indonesia, a top producer of ingredients used in everything from processed foods to soaps, halted exports for three weeks to prop up prices. local cooking oil down.   In response to the ban, it was lifted on Monday. Concerns that there will be food shortages also arose following the lifting of the ban.  Kristalina Georgieva, managing director of the IMF, said on Monday at the World Economic Forum in Davos, Switzerland that “concerns about access to reasonable-priced food throughout the world are on the rise.” because food prices continue to increase.  

 In a statement last week, UN Secretary-General António Guterres warned of “the spectre of global food shortages in coming months” without urgent international action. According to United Nations figures, the number of  people with severe food insecurity has doubled in the past two years, from 135 million before the pandemic to 276 million today.

edited and proofread by nikita sharma

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