Indian wheat production has decreased this year. So, Indian government is worried about the supply of wheat. Moreover, due to the inflation, prices of all the essential commodities have increased. For instance, wheat price has seen a huge increase by 11.74%. So, the government officials are worried about having an adequate reserve of wheat for the domestic consumption. That is they are not interested about exporting wheat at this moment.
Forbes reported:
The country's wheat output for the current year is seen at 72.5 mln tonnes, down from an earlier estimate of 75.53 mln tonnes.
The jump in prices of essential goods, such as wheat, has been a significant factor in pushing
's inflation to a more than two-year high of 6.58 pct. Wheat prices alone have risen by 11.74 pct year-on-year. India The government has asked procurement agencies to ensure adequate wheat purchases to maintain buffer stocks.
It seems that Indian government is interested to ensure supply of bread for its population due to the shortage of wheat production. It is a good initiative taken by the government- banning wheat export for the rest of the year.
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