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BUSINESS EYE JUNE 03, 2022 | The Indian Eye 36

India bans sugar export as

inflation bites economy

After India banned wheat exports to control price rise, the country exported wheat worth

USD 177 million in March and USD 473 million in April this year

OUR BUREAU low wheat production as a result of
an extreme heat wave that enveloped
Mumbai
the northern part of the country that
caused shriveled grains and resulted
he global shortage of sugar in drop in yield per acre.”
has triggered the demand, Sources earlier this month said
Thence Indian government has that the government’s wheat pro-
taken a precautionary step by put- curement dropped by 53 per cent
ting a cap on the export of sugar to so far in the 2022-23 marketing year
100 lakh metric tons (LMT), the idea as compared to the year-ago period
behind the sugar export restriction is due to aggressive buying by private
to make prices of sugar stable, said players for export purposes.
Sudhanshu Pandey, Secretary, De- The government data on
partment of Food and Public Distri- Wednesday further mentioned that
bution. the export restrictions have been a
Pandey, while addressing a press regular feature of major food pro-
conference here, said, “The govern- ducers which has adversely affected
ment wants to ensure enough sugar India too.
stock availability in India, especially On the other hand, India has
during sugar lean season of October taken the step towards the regula-
and November which is the festival tion of wheat exports in order to en-
season in India. The global situation sure food security of India, its neigh-
reflects a shortage of sugar, this may bors and vulnerable countries.
trigger the demand globally and so Amid surging prices of food
as to safeguard domestic availability items due to the ongoing Rus-
and interests the step has been taken sia-Ukraine conflict, Union Com-
by the government.” merce and Industry Minister Piyush
“Our first priority is to ensure A farmer inspects ears of ripe wheat at a farm in a village near Amritsar. Because of a Goyal on Wednesday said India will
sufficient availability of sugar for heat wave, the wheat production is likely to decline this year (ANI) continue to allow wheat export to
consumption at a reasonable rate, countries that are in serious need,
thereafter maximum sugar to be are friendly and have the letter of
diverted to ethanol. Closing stocks in April this year. “Among the wheat exporting credit.
should be approximately 60 LMT if The government data high- countries, India ranked 19th in 2020, Speaking at the World Econom-
any are to be exported. This Year In- lighted that while India’s expected 35th in 2019, 36th in 2018, 36th in ic Forum, Goyal highlighted that
dia has produced 355 LMT of sugar, production of wheat for 2022-23 re- 2017, 37th in 2016, which shows while a 7-8 per cent rise in wheat
the highest in the world. India is the mains at near 105 million metric tons that India has an insignificant share production was expected this year,
second-largest exporter of sugar. To- (MMT), it needs to fulfil domestic (0.47 per cent) while seven countries severe heat waves led to early har-
tal export should be about 100 LMT consumption requirements for its (Russia, the USA, Canada, France, vest and loss of production. “Given
in the current sugar season 2021-22,” 130 crore population (30 MMT re- Ukraine, Australia, Argentina) have this situation, what we are producing
he said. quired for food security schemes the largest share in the overall quan- is about enough for domestic con-
Secretary said that the industry such as National Food Security Act tity of wheat export in the past five sumption,” the minister said.
indicates that sugar exports would (NFSA), Pradhan Mantri Garib years. A negotiation-based approach He pointed out that India was
hardly reach a 100 LMT figure, but Kalyan Anna Yojana (PMJKAY) instead of conflict would have pre- never a traditional player in the in-
still the government imposed a cap and other welfare schemes for near vented removal of nearly a quarter ternational wheat market and the
on exports as a Precautionary mea- 80 crores poor and vulnerable pop- of wheat exports from Russia and export of wheat only began about 2
sure. ulation) while also providing hu- Ukraine,” the data read. years ago.
Meanwhile, weeks after the Cen- manitarian assistance to neighboring It further read, “Still, after the “India wheat exports are less
tral government banned wheat ex- countries and other vulnerable na- conflict began on February 24, 2022, than 1 per cent of world trade and
ports to control price rise, the Centre tions. The government said that 42.7 India has exported wheat worth USD our export regulation should not af-
on Wednesday announced that India MMT of wheat has been distributed 177 million and USD 473 million in fect global markets. We continue to
exported wheat worth USD 177 mil- under NFSA and PMGKAY in FY March 2022 and April 2022 respec- allow exports to vulnerable countries
lion in March and USD 473 million 2021-22. tively despite facing challenges of and neighbors,” Goyal added.

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