Image Credit source: file photo
Wheat Price: Giving information, the Food Agency of the United Nations said that due to the announcement of a ban on India’s wheat exports and the fear of reduction in production after the Russian invasion of Ukraine, the price of wheat has jumped in the international market.
The Food Agency of the United Nations has said that the ban on India’s exports and the Russo-Ukraine War (Russia-Ukraine War) has led to a jump in the global prices of wheat. Due to the extreme heat in March-April, production was affected in India and the prices of wheat were affected by the Minimum Support Price (MSP).MSP) exceeded. Rising wheat prices had an impact on other food products as well and inflation increased significantly. After this, the Government of India started exporting wheat in the month of May.Wheat Export) announced the ban. Due to the Russo-Ukraine war, the price of this major rabi crop in the open market had gone up even before wheat harvesting began. This has also had an impact on government procurement.
Giving information, the Food Agency of the United Nations said that due to the announcement of a ban on India’s wheat exports and fears of reduction in production after the Russian invasion of Ukraine, there has been a jump in the price of wheat in the international market. According to the Food and Agriculture Organization (FAO), ‘wheat prices due to India’s announcement of banning wheat exports amid concerns about crop conditions in several major exporting countries and fears of reduced production in Ukraine due to war. is growing rapidly. In contrast, international coarse cereals prices declined by 2.1 per cent in May, but remained 18.1 per cent higher than their prices a year ago.
56 percent increase in prices compared to last year
The FAO price index averaged 157.4 points in May 2022, down 0.6 percent from April. However, it remained 22.8 percent higher as compared to May 2021. The FAO monitors monthly changes in the international prices of food items. The FAO Food Price Index averaged 173.4 points in May, up 3.7 points (2.2 per cent) from April 2022 and 39.7 points (29.7 per cent) over May 2021. “International wheat prices increased by 5.6 per cent in May for the fourth consecutive month, an average of 56.2 per cent higher than the previous year’s price and only 11 per cent lower than the record increase in March 2008,” the agency said.
The FAO’s sugar price index declined 1.1 per cent compared to April, mainly due to heavy production in India and likely to increase its availability globally. Let us inform here that India had decided to ban the export of wheat on 13 May 2022 as part of measures to control rising prices domestically.
Government buying is very less
The effect of increased prices was also on government procurement. Due to higher prices than MSP, farmers sold the produce in the open market. This time the central government had set a target of 4.44 million metric tonnes of wheat procurement, which was later revised to 1.95 crore metric tonnes. However, this could not be achieved even after extending the period of purchase. Last year the government procurement of wheat stood at 4.33 crore metric tonnes.
: Language Inputs
“This post is sourced from newspapers, magazines and third-party websites. For more information please check NewsNCR Disclaimer“
.