Following requests from a select few nations to permit the shipments of the grains, India has decided to approve the export of wheat and broken rice, the Government announced in two separate notifications recently. In an effort to bring down domestic prices, the South Asian nation forbade the export of wheat and broken rice in 2022.
India’s Wheat And Broken Rice Export Policy
On 8th September , 2022, the Directorate General of Foreign Trade, Union Ministry of Commerce, India, changed the export policy for broken rice from “free” to “prohibited” and imposed a 20% duty on exports of various other rice grades. In an effort to rein in rising domestic prices, India, the second-largest producer of wheat in the world, they have banned wheat exports in May 2022 as there was a decrease in production brought on by heat waves and unseasonal rains leading to a decline in wheat procurement.
India’s Policy Decisions
However, in response to requests, India would permit the export of broken rice to Indonesia, Senegal, and the Gambia in the 2023–24 fiscal year, which began on 1st of April. Additionally, the center granted requests from Nepal and authorized wheat exports for the current fiscal year. The government announced in notifications that Indian exporters who were shipping grains to these nations must bid for the allotted quota of wheat and broken rice.
Indonesia is one of the nations that gains from this change. As per the Trade Minister, the Indonesian Government has signed an agreement with the Indian Government for the potential import of 1 million tonnes of rice if the El Nino weather pattern hits Indonesia’s domestic supply. This agreement would act as a safeguard against potential supply shortages, according to Indonesia's trade minister.
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