Wheat export ban will help crush price manipulation efforts: Sources
New Delhi:
According to sources, the government’s decision to ban wheat exports will help quell attempts by some foreign players to hoard Indian wheat to manipulate prices in global markets.
With this move, he said, India wants to ensure fair and equitable utilization of its wheat stock to meet the global needs, especially of the most needy countries.
“The ban will crush Indian wheat hoarding efforts for price manipulation. It will also counter food inflation,” a source said.
According to industry sources, Chinese traders were trying to manipulate the global market.
He said that Indian wheat will now go to needy countries.
According to an official notification, India has banned the export of wheat with immediate effect as part of measures to control rising domestic prices.
However, export shipments for which irrevocable letters of credit (LOCs) have been issued on or before the date of this notification will be allowed, the Directorate General of Foreign Trade (DGFT) said in a notification on May 13.
It also clarified that export of wheat to other countries would be allowed on the basis of permission granted by the government to meet their food security needs and based on the request of their governments.
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