Export Ban of Wheat: Decoded
A month back, it was evident beyond doubt that wheat yields were down due to the exceptional heat wave and government procurement of wheat would also remain far below the last year levels. But, the mirage of excess production, caused due to wrong estimates of wheat production and analytics by government agencies has led to misplaced policy decisions. In its exuberance to be a messiah to the world, India prodded private trade to export vast quantities of grain, which they complied with gusto. The central government also bravely announced an extension of the subsidized food programme by six months. Therefore, the government of India’s announcement to ban export of wheat has come like a bolt from the sky not only for Indian farmers, traders but also for the international community. Expectedly India has lost credibility and even the G7 has criticized the move.