Just yesterday Govt. Of India announced they will ban the export of Wheat from immediate effect!
What's the reason behind this? Are we entering into a phase of Inflation? ๐ค
Let's unroll ๐งต
What's the reason behind this? Are we entering into a phase of Inflation? ๐ค
Let's unroll ๐งต
Russia is the largest wheat exporter in the world but due to the war they had to stop the exports!
This was a great opportunity for India which is the second largest wheat producing country to sell it's product in the global market!
This was a great opportunity for India which is the second largest wheat producing country to sell it's product in the global market!
Even the govt was committed to this cause and Our PM has said multiple times on the International forums that India will keep the global supply chain intact!
Then what led to this ban?
Then what led to this ban?
1) Sun is shinning a little more this year:- Due to the scorching heat wave across the country the size of the crops shrinked!
Our groundwater level is already falling and the rising heat wave is not good for the crops!
Our groundwater level is already falling and the rising heat wave is not good for the crops!
This indicates we may not be able to fulfill our domestic needs so according to the food security law the govt has decided to impose ban on the exports!
2) Rising fuel prices:- Oil! Oil! Oil! It all comes down to oil in the end!
Rising fuel prices has increased the transportation cost. This is affecting almost every product in the market.
Rising fuel prices has increased the transportation cost. This is affecting almost every product in the market.
Wheat supply is already low this year and rising oil prices may add fuel to this fire (Pun Intended)
and the govt cannot afford to have this crisis right now.
and the govt cannot afford to have this crisis right now.
What will be the implications of this?
Right now there is no other wheat exporter as big as India. This ban is creating a big void in the global market.
We may see a rise in the global inflation rate!!
Right now there is no other wheat exporter as big as India. This ban is creating a big void in the global market.
We may see a rise in the global inflation rate!!
Although this ban is not absolute which means If a country sends a formal request to the govt of India, India will consider sending a shipment!
All the exports will be fulfilled through the govt and not by any private entity
All the exports will be fulfilled through the govt and not by any private entity
In the end we can say this decision is taken to protect our domestic food security and keep the prices in check!
Let's see how the International community takes this and will there be any serious consequences for this!!
Let's see how the International community takes this and will there be any serious consequences for this!!
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