Global Rice News

India Retains Export Curbs on Wheat, Rice, and Sugar

The Government of India (GOI) has confirmed that it will not be lifting the export curbs on wheat, rice, and sugar, according to Union Minister for Commerce Piyush Goyal. Goyal emphasized that there are no plans or need to import these essential commodities, as the government aims to maintain their availability and control prices in the domestic market.

In May 2022, India implemented restrictive measures that included a ban on wheat exports. Furthermore, non-basmati rice exports were halted from July 2023, and the restrictions on sugar exports have been extended beyond October 2023.

Goyal stated, “There is no proposal as of now to remove export restrictions on wheat, rice, and sugar. And India will not import wheat and sugar.”

Despite the export curbs, India has been supporting friendly nations by exporting rice to countries such as Indonesia, Senegal, and Gambia, ensuring their food security needs are met.

The government’s decision to impose export restrictions has received mixed reactions from economists. Some experts welcome the move, particularly as the country’s central bank faces challenges in keeping inflation below its tolerance band. However, others view it as a reactionary measure and believe that the government should formulate a rational trade policy that benefits both consumers and producers.

India’s retail inflation reached a four-month high of 5.69% in December 2023, as reported by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI). This marks the second consecutive month where the inflation rate has exceeded the Reserve Bank of India’s (RBI) medium-term inflation target of 4%. In November 2023, retail inflation in India stood at 5.55%.

On a positive note, core inflation, which excludes fuel and food prices, decreased to 3.89% in December.

Source: [Livemint](https://www.livemint.com)