Centre introduced tighter controls on wheat exports on Saturday . Domestic sellers reported that prices had started easing within hours of the measures being announced .
NEW DELHI: The Centre introduced a number of initiatives on Saturday, including tighter controls on wheat exports.However, food secretary Sudhanshu Pandey said, Global demand was increasing and that different countries were enforcing restrictions.Prices were driven by moods.We're confident that the moods will now drive down the prices.According to the Roller Flour Millers Federation of India, prices dropped by Rs 100-150 per cent across several states.We're directing the wheat trade in a particular direction.We do not want the wheat to be sent in an unregulated manner to places where it could be just hoarded or where it cannot be used to the extent that we hoped it would be used, according to commerce secretary BVR Subrahmanyam, who explained the rationale for placing exports in the prohibited category.Following discussions in a ministerial committee headed by home minister Amit Shah, was the first to publish information on the proposed export curbs on Friday. Higher exports, which were deemed a major concern just a month earlier, resulted in lower government procurement, as well as crop losses as a result of the early onset of summer, adding to global supply challenges.Pandey, on the other hand, wanted to ensure that there were enough stocks to satisfy domestic demands.Stocks were estimated to be 190 lakh tonnes at the start of April, despite a 75 lakh-tonne buffer requirement.Along with export restrictions, the government also took other measures, including reducing the wheat distribution to states under the National Food Security Act (NFSA). The food ministry revised the wheat allocation for ten states under the National Food Security Act (NFSA) on Friday.This pattern will remain in force until March, 2023.According to the revised regulations, the total allocation of wheat to these states under NFSA will be 9.4 lakh tonnes per month up to March, down from a previous allocation of 15.4 lakh tonnes, or about 40%.This will save around 110 lakh tonnes of extra wheat, which will be available with the government in its stocks to meet any demands. In addition, exports for which irrevocable letters of credit have been issued will be allowed.Officials stated that this would allow exports to neighbouring countries such as Bangladesh and Nepal, but that cargoes to China and Pakistan would not be permitted.Subrahmanyam refused to comment on the issue amid allegations that China was hoarding wheat and other foodgrains due to a drop in global prices.