New Delhi, February 14
In yet another move to contain spiralling inflation, which has touched 6.5 per cent, the government has imposed a complete ban on export of wheat and allowed free imports of maize.
The Directorate General of Foreign Trade in the Commerce Ministry has notified that the ban on all varieties of wheat, including on durum and seed, would remain in force till the end of 2007.
The crop for this season is estimated at 72.5 million tonne, a marginal increase over last year’s production of 69.5 million tonne.
Though there were negligible exports of wheat in 2005-06, the ban is meant to ensure that the Food Corporation of India (FCI) would have sufficient stocks this year.
FCI’s procurement had seen a sharp decline last year at 9.2 million tonne from 14.8 million tonne the previous year, forcing the government to go in for imports.
The free import of maize is likely to check the rise in prices, which has been triggered by increasing demand from the poultry industry and low production.
In a related development, of the 5.5 million tonne of wheat imported through the State Trading Corporation, 4.993 million tonne has arrived at eight ports across the country.
The remaining balance is expected to arrive by month-end, an official statement said here today.
Of the 5.5 million tonne of wheat received on Monday, Mundra port got 2.36 MT, Kandla 1.01 MT, Vizag 5.6 lakh tonne, Chennai 5.3 lakh tonne, Tuticorin 2 lakh tonne, Kakinada 1.1 lakh tonne, Mumbai 1 lakh tonne and Cochin 80,000 tonne.
The government and the Reserve Bank of India have in the recent past unleashed a number of steps to curb inflation and money supply.
Only yesterday, the RBI hiked the cash reserve ratio by half per cent to 6 per cent to control money supply in the banking system — a move to curb credit flow.
