The government has imposed a complete ban on export of
wheat and allowed free import of maize in a bid to bring
down inflation, which has touched 6.5 per cent.
notification by the directorate general of foreign trade
said the ban on all varieties of wheat, including durum
and seeds, would remain in force till the end of 2007.
wheat crop for this season is estimated to be 72.5 million
tonnes, marginally above last year's 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.
spurt in prices of essential goods, such as wheat, dal,
etc has been a significant factor in pushing India's inflation
to a more than two-year high of 6.58 per cent. Wheat prices
alone have risen by 11.74 per cent year-on-year.
the government has asked procurement agencies to ensure
adequate wheat purchases to maintain buffer stocks, the
of India has in the recent past announced a number of
steps to curb inflation and money supply, the latest being
the hike in the cash reserve ratio by a half per cent
to six per cent - a move to curb credit flow.