India’s declaration of ‘Opening to export wheat to South Asian neighbours despite ban’ Reflection of ‘Neighbourhood First Policy’?

    18-May-2022
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John Rozario
Since the start of the Russia-Ukraine crisis, India’s ban on wheat exports has reignited worldwide concerns about rising food prices that can exacerbate the problems of food-deficit countries especially neigbouring countries.
The Indian High Commission in Dhaka has clarified recently concerning India’s ‘ban’ on wheat exports, saying that the directives have no bearing on shipments of wheat previously contracted for sale. Commercial wheat exports from India have been restricted, according to a press release released on Sunday (May 15, 2022).
‘These directives will not preclude wheat from being exported to India’s neighbors and other Nations that may request it to assist their domestic food security measures,’ according to the announcement. The Indian High Commission stated that recent media reports claimed that India has imposed a “ban” on wheat exports.
The release stated, “These actions have been taken to ensure domestic food availability, minimize food price-related inflation, and support the legitimate requirements of India’s neighbors and other Nations with food security issues.”
According to a statement issued by the Indian High Commission in Dhaka, India’s restriction on wheat export will not prevent export to neighboring countries and countries that may seek to acquire the current crop to boost their domestic food security measures at the request of their Governments.
India said today that it will not allow the wheat export embargo to jeopardize the food security of its South Asian neighbors, and that the policy was only temporary.
According to media reports, BVR Subrahmanyam, India’s Commerce Secretary, said that there was no wheat shortage in the country and that the decision was to keep domestic wheat and wheat flour prices under control.
He also stated that India is dedicated to addressing the food security of its neighbors and vulnerable Nations.
“We’ve left the window open for the sake of (our) neighbors.
“We’ve also left the door open for a significant number of vulnerable countries to make such requests if their Governments do so...” He went on to say, “The order is to divert trade to the needy, poor, and vulnerable countries,” without mentioning any of them.”
Wheat prices hit a new high on Monday after India opted to halt exports due to a heat wave that hampered output. As the European market opened, the price increased to 435 euros ($453) per tonne.
Since Russia’s February invasion of agricultural powerhouse Ukraine, which previously accounted for 12% of global exports, global wheat prices have risen due to supply concerns.
After the hottest March on record, India, the world’s second-largest wheat producer, announced a restriction on exports on Saturday. New Delhi expressed concern over the food security of its 1.4 billion people, citing reasons such as decreased supply and dramatically increased world prices.
To understand, in the case of Bangladesh (for example), following the commencement of the conflict between Russia and Ukraine, India became Bangladesh’s primary wheat importer. India, on the other hand, has stopped exporting wheat since Friday. The price of wheat in Bangladesh was already expensive, and this move has driven costs much higher.
Bangladesh’s second most important crop is wheat. 30 million (3 crore) tonnes of rice and 7.5 million (75 lakh) tonnes of wheat are required annually in the country.
Bangladesh’s imports from the two countries came to a halt near the end of February, following Russia’s invasion on Ukraine. Traders in Bangladesh began importing wheat from India after that.
According to the website of India’s Commerce Ministry, the country exported roughly 6.6 million (66 lakh) tonnes of wheat in the first 11 months of the fiscal year 2021-22. Bangladesh was the final destination for 57% of this wheat.
According to Bangladeshi media outlets, prices spiralled as news broke out in Bangladesh. The news of increasing prices of wheat has left people bewildered.
Neighbouring countries including Bangladesh were saddened by the news that India has stopped exporting wheat. Bangladesh is the single largest importer of Indian wheat. Besides, wheat is the second most used food grain in Bangladesh.
Bangladeshi economists and importers have expressed concern after India announced a halt to wheat exports. Meanwhile, the Government is holding one meeting after another on how to import wheat in an alternative way.
The country’s wheat importers are in trouble as India announced a sudden halt to wheat exports last Friday. After the start of the war in Ukraine, Bangladeshi importers chose India to import more wheat than before.    (To be contd)