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INDIA BANS WHEAT EXPORT WITH IMMEDIATE EFFECT

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India has banned wheat exports with immediate effect as part of measures to cool rising domestic prices, according to an official notification.

In a separate notification, India also announced easing of conditions for export of onion seeds. The export of onion seeds was earlier prohibited.

However, the export shipments of wheat for which irrevocable letters of credit (LoC) have been issued on or before the date of the notification will be allowed, the Directorate General of Foreign Trade (DGFT) said in a notification dated May 13, our New Delhi correspondent reports.

"The export policy of wheat is prohibited with immediate effect," the DGFT said.

It also said that wheat exports will be allowed on the basis of permission granted by the Indian government of India to other countries to meet their food security needs and based on the request of their governments.

According to estimates by the Directorate General of Foreign Trade, India exported a record seven million tonnes of wheat in 2021-22 financial year which is valued at $2.05 billion. Out of the total shipment, around 50% of wheat was exported to Bangladesh in the last fiscal.

The notification on export of onion seeds said: "The export policy of onion seeds has been put under the restricted category, with immediate fact."

India's ban on wheat export comes on the back of an estimated large drop in domestic output due to a severe heatwave in March-April this year and a sharp rise in domestic food prices, especially of cereals.