Wheat Prices Stabilise in India below Rs. 2400 Per Quintal

Wheat prices stabilise in India below Rs. 2400 per quintal

After Russia invaded Ukraine global wheat prices started soaring and reflection of that was seen in wheat prices prevalent in India too. Wheat price in India was going places till recently but now it has stabilized. Worst has passed it seems. Stabilization of wheat prices would not have been possible without policy interventions by government of India. Policy interventions of GOI have been well thought out and far-sighted. DGFT has issued three notifications in four months to rein in prices of wheat.

First of the three DGFT notifications that helped rein in wheat price in India was issued on 13th May 2022. This notification amended wheat export policy. This particular amendment was meant to protect food security of Indian people, people of neighbouring countries of India and also people of vulnerable countries from risks arising out of soaring global wheat prices due to Ukraine-Russia war. This amendment was meant to make Bulk Wheat Export more targeted and if we take a look at the list of dozen countries where Indian wheat reached after issue of this notification then that target becomes amply clear. 1.8 million tonnes of wheat was exported to dozen countries within two month of issuance of this notification. This notification had left window open for such targeted wheat exports while putting wheat export in prohibited category. This notification was successful in fulfilling all three targets of reining in wheat prices in India, ensuring supplies to neighbouring and vulnerable countries and ensuring food security of Indian people.

Second DGFT notification meant to rein in wheat and wheat flour prices was issued on 6th July 2022. This notification amended wheat flour export policy. The notification put a precondition of obtaining recommendation of inter-ministerial committee on wheat export for wheat flour shipments, basically to maintain quality of wheat flour exported from India. This notification didn’t change the category of wheat flour exports and wheat flour export is still in free category. Only change this notification brought about is that since this notification came into effect from July 12th 2022, all wheat flour shipments need recommendation from inter-ministerial committee on wheat exports.

On 8th August 2022, a third notification has been issued by DGFT that is basically a diversification of 6th July notification. This notification amends export policy of wheat flour, refined wheat flour (Maida), Samolina (Sooji), Wheatmeal atta and Resultant atta. It will come into effect from 14th of August 2022. Just like 6th July notification this notification doesn’t amend the export category of items mentioned in the notification and all items mentioned in the notification still remain in free category of export commodities. In this notification special stress has been put on quality assurance. Exporters need to obtain quality certificate from EIC (export inspection council) or it’s EIAs apart from recommendation from IMC (inter-ministerial committee) on wheat exports. As this notification just like 6th July notification doesn’t restrict export of any commodity, exporters can go about their export business without any worries. Those exporters who want to export wheat flour, refined wheat flour and Samolina online can also choose a good B2B ecommerce platform and export to global buyers. Exporters need to ensure that the B2B platform that they are using has a buyer database that is not only huge but also wide ranging. Tradologie is a prime example of such a B2B ecommerce platform.

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