Export ban will help crush attempts to hoard Indian wheat for price manipulation in global markets: Sources

The government’s decision to ban wheat exports will help crush attempts by some foreign players to hoard Indian wheat for price manipulation in global markets, according to sources.

With this move, they said, India wants to ensure fair and accurate use of its wheat stocks to meet global needs, especially in the most needy countries.

“The ban will crush attempts to hoard Indian wheat for price manipulation. It will also counteract food inflation,” said a source.

According to industry sources, Chinese traders tried to manipulate the global market.

Indian wheat will now go to the needy countries, they noted.

India has banned the export of wheat with immediate effect as part of measures to control rising domestic prices, according to an official statement.

However, export shipments for which irrevocable letters of credit (LoC) have been issued on or before the date of this notice will be allowed, the Directorate-General for Foreign Trade (DGFT) said in a statement dated 13 May.

It also clarified that wheat exports will be allowed on the basis of permits granted by the government to other countries to meet their food supply needs and based on requests from their governments.

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