Delhi: In an anti-inflationary crackdown, the government
has imposed a complete ban on export of wheat and allowed
free imports of maize.
directorate general of foreign trade in the commerce ministry
has notified that ban on all varieties of wheat, including
durum and seeds, would remain in force till the end of
wheat crop for this season is estimated to be 72.5 million
tonnes, a marginal increase over last year''s production
of 69.5 million tonnes.
there were negligible exports of wheat in 2005-06, the
ban is meant to ensure that the Food Corporation of India
(FCI) would have sufficient stocks this year.
procurement had seen a sharp decline last year at 9.2
million tonnes from 14.8 million tonnes the previous year,
forcing the government to go in for imports.
free import of maize is likely to check the rise in prices,
which has been triggered by increasing demand from the
poultry industry and low production.
government and reserve bank have in the recent past unleashed
a number of steps to curb inflation and money supply.
Tuesday, the RBI hiked the cash reserve ratio by a half
per cent to six per cent to control money supply in the
banking system a move to curb credit flow.