Wheat Crisis 2022, India has been drawing international attention since it unexpectedly announced a wheat export ban last week, exacerbating the global wheat shortage caused by the war between Ukraine and Russia.
Wheat Crisis 2022, As wheat purchases bottomed out, the state changed the amount of wheat and rice allocated to beneficiaries of various government initiatives in Uttar Pradesh on Thursday.
The distribution scale has been revised from June 2022 to March 2023 by the National Food Safety Act.
In accordance with the revised recommendations, the amount of wheat for Antiodaya cardholders has been increased from 20 kg to 14 kg and the amount of rice has been increased from 15 kg to 21 kg.
First of all, household cardholders will receive 2 kg of wheat and 3 kg of rice instead of the previously 3 kg of wheat and 2 kg of rice per item. Meanwhile, there will be no wheat distribution as part of Pradhan Mantri Garib Kalyan Anna Yojana and each beneficiary will receive only 5 kg of rice from May to September. Previously, 3 kg of wheat and 2 kg of rice were provided to beneficiaries per item, a senior government official said. In Uttar Pradesh, subsidized or free rations are provided to 3.61 crore cardholders and 14.98 crore households under various government initiatives.
The world’s second-largest wheat producer, which ordered a ban on new export trade in the commodity last week, came under criticism from the G7 developed countries as inflation soared after the Ukraine war. He urged India to take responsibility for becoming a member of the G20.
Wheat prices reached an all-time high in European trade at 438.25 euros ($456.68) per tonne as markets closed on Monday after India decided to ban exports despite thousands of trucks on Tuesday.
However, on the same day, India announced it would allow overseas shipments of wheat pending customs, which would bring some relief to exports, including Egypt. The Indian government has said that by 13 May, shipments of wheat will be allowed for export if they have been delivered to customs, inspected and registered in the system.
However, on May 13, India imposed an export ban allowing only requests for approval from other governments in New Delhi and granted some relief on Tuesday.
This contrasts sharply with India’s position in April when Prime Minister Narendra Modi met US President Joe Biden at the United Nations, at which India wanted the World Trade Organization (WTO) to allow wheat exports.
But the supply shortage was triggered by Russia’s February invasion of Ukraine, which accounts for 12% of world exports.
Before Russia invaded Ukraine nearly three months ago, these two countries supplied about a third of the world’s annual wheat sales. They also supplied 55% sunflower oil and more than 15% corn and barley. The war has seriously disrupted the supply chain. Prices have skyrocketed since the start of the Ukrainian War.
Although India is a small exporter, ensuring supply through large buffers has supported global prices to some extent and quelled fears of large-scale deficits, but these announcements signalled a change in government policy.
Also read: RBI 2022, sold $20.1 billion in March to protect rupees.
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