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HomeNationalGovernment's wheat policy reversed in one night
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Government’s wheat policy reversed in one night

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The night went on and the talk went. On May 12, the government had announced the formation of a task force to encourage the export of wheat. It was also said that a delegation for one would visit nine countries. Earlier, it was being told continuously that after the Ukraine crisis, the demand for Indian wheat is increasing across the world. But the very next day the news came that the export which was being encouraged till last night was banned in the morning. Wheat can be transported from different places to the ports without any hindrance. Then it came to know that the railways had suddenly increased the fare for wheat. However, this did not imply that the incentive scheme was going in the opposite direction.

This time the situation in the world is creating possibilities for wheat export, this was understood by the private sector for a long time. He had also procured wheat on a large scale at exorbitant prices. In this affair, government procurement has come down considerably. Came below the target by 40-45 per cent. For the first time this has happened that the new procurement of wheat has been less than the government’s stock during the harvest season. Then the sudden heat in March this year also reduced the production of wheat. The government has not presented any assessment of this shortfall, but some experts say that this shortfall could be as much as 15 to 20 percent.

However, it is not very much expected that prices will be prevented from rising only by stopping exports. In the greed of exports, companies who have accumulated huge stocks of wheat, instead of putting it in the market, would prefer to lobby for lifting the ban for the time being. This work has already started.

Production has also reduced and government procurement will also depend on the government’s poor welfare scheme, under which 80 crore people in the country are being given five kilograms of free food grains every month. It has to be seen how long the government runs this scheme now. And does it risk running out of buffer stock to make it run longer?

If the government buys from the open market to run this scheme, then the prices in the market may start rising again. And if the government closes the scheme or makes some changes in it, then the people who are getting free food grains so far will reach the market to buy themselves and the result can be the same. At present, the hope is that the government would like to run this scheme at any cost till the year 2024.

, Government’s wheat policy reversed in one night

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