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Gov't Partially Relaxes Wheat Ban, Comes After US Comments

INDIA

India's Ministry of Commerce and Industry has confirmed that it will partially relax the almost-total wheat export ban, tweeting: "Government announces some relaxation in wheat export notification; Allows wheat consignment already registered with Customs prior to the order"

  • Full ministry statement: https://pib.gov.in/PressReleasePage.aspx?PRID=1825991
  • Javier Blas at Bloomberg tweets: "India announces some "relaxation" of its wheat export ban, allowing some grain to leave ports. The relaxation comes after the US government said it had "deep concern" about the export ban"
  • The relaxation is only a marginal one though, with the ban on new orders still in place. The statement says the ban is in place in order to serve "...three main purposes: ensure India’s food security and check inflation, it helps other countries facing food deficit, and it maintains India’s reliability as a supplier. The order also aimed to provide a clear direction to the wheat market to prevent hoarding of wheat supplies."
  • On Monday, US Ambassador to the UN Linda Thomas-Greenfield stated "We have seen the report of India’s decision. We’re encouraging countries not to restrict exports because we think any restrictions on exports will exacerbate the food shortages. We hope they hear the concerns being raised by other countries, that they would reconsider that position.”

Chart 1. India's Wheat Exports, Value (USDmn)

Source: Indian Ministry of Commerce, businesstoday.in

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