India is unlikely to become a major grain exporter despite promises | Currently
India appears to have failed to deliver on its earlier promise to become a major grain exporter. The sources told the news agency that due to the disappointing crops, the country will consider sourcing grain from other places Reuters. Shortly after the Russian invasion of Ukraine, Indian Prime Minister Narendra Modi boasted that India was ready to “feed the world”.
But after just four months, the opposite appears to be true. Due to the record heat wave that hit India this spring, the grain harvest is not as high as expected. Due to reduced production, prices increased domestically. This made everyday life more expensive for hundreds of millions of Indians. They use the grains to make basic foods like naan and chapati.
After the first indications that the wheat harvest would not be as high as previously estimated, grain exports were already limited. The state’s reserves fell to their lowest level in 14 years in August. Wheat became 12 percent more expensive for consumers. With shortages looming and prices rising, authorities are now preparing to buy wheat from elsewhere.
It is said that government officials are currently in talks about reducing or eliminating the 40 percent import tax on wheat to help flour manufacturers in some areas import the grain. However, India’s Food Ministry said in a Twitter message on Sunday that there are no plans for grain imports and that there are sufficient stocks.
India has never before been a major grain exporter
Although India is the second largest wheat producer in the world, it has not been a major exporter of wheat. Nor did it import much. The country was almost self-sufficient.
Authorities now estimate that the 2021-2022 crop will be around 107 million tons, up from an estimate of 111 million tons in February. This new estimate may be a bit overly optimistic, with traders and flour manufacturers expecting a return of 98 million to 102 million tons.
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