The government’s decision to ban wheat exports will help crush efforts by certain foreign players to hoard Indian wheat for price manipulation in global markets, sources say.
With this move, they said, India aims to ensure fair and proper use of its wheat stocks to meet global needs, especially of the most needy countries.
“The ban will negate attempts to hoard Indian wheat for price manipulation. It will also curb food inflation,” a source said.
According to industry sources, Chinese traders tried to manipulate the global market.
Indian wheat is now going to the needy countries, they noted.
India has banned wheat exports with immediate effect as part of measures to contain rising domestic prices, according to an official announcement.
However, those exports for which Irrevocable Letters of Credit (LoC) were issued on or before the date of this notice will be allowed, the Directorate General for Foreign Trade (DGFT) said in a May 13 notice.
It also clarified that wheat exports will be allowed on the basis of government authorization to other countries to meet their food security needs and at the request of their governments.
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