Responding to a report published by Bloomberg earlier today, 21st August 2022, which said India is undergoing food shortages and planned to import wheat. The Department of Food & Public Distribution said India does not have plans to import wheat.
The story by Bloomberg said, “Indian Prime Minister Narendra Modi boldly declared that his country was ready to “feed the world” after Russia’s invasion of Ukraine. Less than four months later, the government needs to consider grain imports.”
To clarify, the Department of Food and Public Distribution said, “There is no such plan to import wheat into India. The country has sufficient stocks to meet our domestic requirements and the Food Corporation of India has enough stock for public distribution.
The report stated that Prime Minister Narendra Modi had “boldly declared” to feed the world as Russia invaded Ukraine.
However, the consecutive streams of heat waves across the country have devastated a substantial yield which has caused a hike in food prices.
The price of wheat has skyrocketed since the Russian invasion started as, both Russia and Ukraine are one of the largest exporters of wheat contributing to 30% of global exports
According to World Food Programme, WEP, the war is going to affect 81 countries’ food supply putting 47 million people at risk of acute hunger.
In Indore in Madhya Pradesh, which is considered one of the key mandis, wheat prices touched as high as Rs 2,400-2,500 per 100 kg, against Rs 2,000-2,100 until the conflict in Ukraine broke out. Prices of wheat usually remain on the lower side during this time of the year as freshly harvested rabi crops make their way into the physical markets or mandis.
Still, the current wheat price in India is well above the Centre’s assured Minimum Support Price of Rs 2,015 per 100 kg, which in itself is a rare phenomenon. Currently, wheat is trading a little below Rs 2,400 per 100 kg in Indore. In other markets too, wheat prices have somewhat softened.
However, the wholesale prices of wheat have been stabilised bringing them down from their all-time high prices due to Central Government’s efforts.
Wheat has also been put under the “prohibited category” of exports.
