Agriculture Current Affair 17 May 2022

Restriction on agricultural exports ‘indirect tax’ on farmers: Bharat Krishak Samaj

Farmers’ body Bharat Krishak Samaj (BKS) on Saturday expressed unhappiness over the ban on wheat exports, saying that restrictions on shipments of farm produce are an “indirect tax” on farmers.

Farmers will not be able to take advantage of high global prices, while India will lose credibility as a reliable trading partner, it said.

“Sadly, India has banned exports of wheat. Restrictions on agricultural exports are an indirect tax on farmers in countries where imposed,” Bharat Krishak Samaj Chairman Ajay Vir Jakhar told PTI.

Early onset of summer also reduced wheat yield

The decision to ban wheat exports came after the ministry of consumer affairs, food and public distribution raised concerns over prices and food grain availability for food security needs, sources in the trade and industry told ET.

The commerce ministry was of the view that India should utilise the strong global demand to export more. That actual production was likely to be much lower than even the downward revised amount, also clinched the case for an export ban.

The government had earlier this month cut its initial wheat production estimate from 111.3 million tonnes to 105 million tonnes following adverse weather conditions. The early onset of summer this year has also reduced yields

World’s food problems piling up as India restricts wheat exports

India’s move to restrict wheat exports is set to reverberate through global agricultural markets, exposing just how tight global supplies are after the war in Ukraine and threatening to drive up food prices even more.

The government said in a notification dated May 13 it will suspend overseas sales to manage its food security. This drew criticism from the agriculture ministers of the Group of Seven nations, who said that such measures make the world’s crisis worse.

The surprising thing is that India isn’t even a prominent exporter on the world stage. The fact that it could have such a major impact underscores the bleak prospect for global wheat supplies. War has crippled Ukraine’s exports, and now droughts, floods and heat waves threaten crops in most major producers.

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