According to the Indian Food Ministry, the forecast of rain this month will limit crop damage, ensuring sufficient supplies of grains. Ongoing food restrictions and inflating prices of grains are major concerns of the GOI.
The Indian government is also considering scrapping the import duties on wheat as wheat supplies are sufficient, India put a 40% import duty on wheat imports earlier this year. Increasing prices of staples are a constant concern for the government of India. In response to that, the Indian government is taking many aggressive steps to protect domestic needs which include the recent rice export restrictions in July. This step increases the rice price in the global market to a 15-year high.
India is a major exporter of rice in the world accounting for over 40% of rice exports across the globe. India also restricted the exports of various other staples, selling grains from the state reserve to secure domestic needs
According to the sources the stockpiles of wheat and rice are sufficient for domestic needs and welfare programs, while the procurement process of rice from this season's harvest will begin in October. This will help in boosting the state reserves further. Reports also mentioned that the government is keeping a close eye on stocks of other grains held by traders to stop them from stockpiling.
Statements by the Officials
On Friday, the Food Secretary Mr. Sanjeev Chopra said that the situation in the country is not concerning because there are adequate grain supplies and a new rice harvest is about to be planted. In many areas, normal to above-average rainfall is also anticipated this month, which may lessen the effects of disruptions like the worst August in a century.
He added, “The government has taken many steps to ensure the food security of the country. As of now, there are no proposals for further export curbs. Restrictions already served their purpose.” India can fulfill its wheat need through local wheat suppliers as there are enough stocks, Chopra said. He also stated that the government had not taken any decision on scrapping wheat import duties. Food Secretary also said, “All options are open. We are monitoring the situation. In case we feel that there is any kind of requirement, then the government will exercise the option which is appropriate at that point in time”
Final Thoughts
In conclusion, this month’s rain will clear the speculation in the Indian market about further export curbs or the scrapping of wheat import duties. As said by the officials, currently India is relying on the local grain supplies to meet the needs of the domestic market.
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