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India had banned wheat exports in May, given the heat wave that affected crops. Domestic prices have risen to a record and international values are well above the domestic market, making purchases from trades abroad difficult.
If the government removes the tariff and international prices fall, it is possible for traders to start importing during the next festival season, when demand is highest and drives up domestic prices. There are possible options with the aim of reducing prices.
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The Ministry of Commerce said it will restrict the export of some wheat products from August 14, with an inter-ministerial committee authorized to release shipments. According to reports, exports of these items are generally small.
The capital New Delhi may eliminate the 40% tariff on imports and impose inventory limits on wholesalers and traders. Wheat prices in India ended last week at a record 24,000 rupees ($301.57) per tonne, rising 14%, surprising markets on May 14 by banning exports.
The information is from Reuters (MUMBAI).
Source: Aline Merladete | agrolink
