Wheat is the primary cereal crop in India. It is rich in protein, vitamins and carbohydrates. It is mainly consumed in the north and northwest. It is sown in a total area of about 29.8 million. In 1947, the productivity of wheat was low at 6.446 million tonnes. Because of this, it had to import wheat.
But because of the Green Revolution in the 1960s, wheat production increased to 87 tonnes, which ranked India as the second-largest producer. In India, wheat is sown in Uttar Pradesh, and it is the largest producer of wheat in India, with a total production of 25.22 million tonnes.
Punjab produces 15.78 million tonnes, and Madhya Pradesh produces 14.18 million tonnes. Apart from these states, wheat is also cultivated in Assam, West Bengal, Rajasthan, Bihar etc. It is sown from September to December, and harvesting is done from February to May.
India is the second wheat exporter, with 8.2 million tonnes in March 2022. But, India has banned wheat exports because of disruption in global supplies due to ongoing trade with Russia and Ukraine (these are significant exporters of food grains) and to control domestic prices. The government recently stated that India could export wheat between 10 to 15 million tonnes. Up to this, five million tonnes of wheat are deducted from exports.
Because of this sudden ban, the local wholesale margin fell. Also, global prices soared in Chicago. It went to 5.9 percent. Because of the ban, the farmers are being impacted, and the traders that supply to exporters have huge losses. Many exporters refused to unload trucks, and distinction contracts supplicate the force majeure clause.
The ban could affect global prices, and poor consumers in Asia and Africa could be worse. Also, it has threatened to screw the global wheat supply. Also, because of the hot impacting yields in March, the wheat production was 18 million tonnes compared to 44 million tonnes.
The report published by Deloitte said rampant climate change would decline India’s economic growth and would put 80 percent of GDP at risk. The services, manufacturing, transport etc., would suffer the most significant climate-related losses over the next 50 years. By 2070, it would encounter an average annual loss in the added value to GDP of more than $1.5 trillion per year.
There was inflation, and wholesale wheat prices rose by 10.7 percent in April. The policy by the government has failed, and inaccurate crop estimates could judge this. At the start of May, the food secretary said the production to be lower than 105 million tonnes. But on 19 May, the agriculture ministry said it would be 106.4 million tonnes.
The g7 (group of seven includes: Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and the European Union.) industrialised nations doomed India’s decision. Also, Cem Ozdemir stated, “If everyone starts to impose restrictions or close markets, that will worsen the crisis” at the news conference in Stuttgart.
The government officials in New Delhi stated that India would permit exports funded by issued letters of credit and those countries that request supplies to meet their security needs. The officials in a news conference stated that the ban wouldn’t be permanent.
But, seeing the condition, it would be revised. Wheat prices in India have been inflated. It is priced at 25000 rupees ($320) per tonne in some markets, and the minimum port price is 20150 rupees ($260).