According to reports, the government’s move to restrict wheat exports will aid in crushing attempts by select international entities to stockpile Indian wheat for manipulating the price in global markets.
They stated that with this measure, India aims to guarantee that its wheat supplies are used fairly and properly to meet global demands, particularly those of the poorest nations.
The restriction will put an end to attempts to stockpile Indian wheat in order to manipulate prices. According to a source, it will also help to combat food inflation.
Chinese merchants, according to industry sources, were attempting to influence the worldwide market.
They said that Indian wheat will now be sent to underdeveloped countries.
According to an official announcement, India has prohibited wheat exports with immediate effect as part of steps to curb soaring local prices.
However, export shipments for which irrevocable letters of credit (LoC) were granted on or before the date of this announcement will be permitted, according to a May 13 statement from the Directorate General of Foreign Trade (DGFT).
It further underlined that wheat exports will be permitted if the government grants authorization to other nations to satisfy their food security needs and if their governments seek it.