HomeCURRENT AFFAIRSIMF chief Kristalina Georgieva: Beg India to reconsider wheat exports ban

IMF chief Kristalina Georgieva: Beg India to reconsider wheat exports ban

International Monetary Fund (IMF) chief Kristalina Georgieva requested India to reconsider its ban on wheat exports. Stating that the country could play a key role in international food security and global stability.

“I do have an appreciation for the fact that India needs to feed nearly 1.35 billion people and I do have appreciation for the heatwave that has reduced agricultural productivity, but I would beg India to reconsider as soon as possible because the more countries step into export restrictions, the more others would be tempted to do so and we would end up as a global community less equipped to deal with the crisis,” she said at the World Economic Forum in Davos, Switzerland.

Georgieva further said, “Wheat is one of the areas where Ukraine and Russia have been dramatically impacted by the war so depending on how much India can export and where it directs its exports, it could have significant impact especially if exports go to the countries most severely impacted like Egypt or Lebanon where what we see is not only risk of hunger but risk of social unrest and impact on global stability.”

The main reason behind the decision to ban wheat exports is being estimated to be less production than last year. In fact, till February, more production was being estimated than last year, but in May the government has issued revised estimates, in which less production has been estimated.

In fact, the Department of Agriculture and Farmers Welfare and Directorate of Economics and Statistics had released the Advance Estimate Report in February 2022 regarding the total production of all the crops. Under which the production of wheat during the Rabi season in the year 2021-22 was estimated to be about 2 million tonnes more than that of 2020-21. According to the advance estimate report released, wheat production during the Rabi season in the year 2020-21 was 109.59 million tonnes, in the year 2021-22, the advance estimate of wheat production during the Rabi season was estimated at 111.32 million tonnes, but Agriculture Ministry revised wheat production in the first week of May. The estimate was released. Under which production of 105 million tonnes is estimated in this Rabi season.

Another one of the main reasons for the ban on the export of wheat is that the price of wheat is sold more than the Minimum Support Price (MSP). In fact, due to the war between Russia and Ukraine, the demand for Indian wheat has increased significantly abroad. Because of this, the prices of wheat in the open markets of the market are running more than the MSP.

The impact of the Russo-Ukraine war and low production has been the most in the Indian market of wheat. Because of this, the prices of wheat are running higher than the MSP and the government process of wheat procurement has been completely affected.

However the country, has already said it will still give permission of exports to countries that request supplies “to meet their food security needs”.

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