IMF lauds India's decision to ease ban on wheat exports

WASHINGTON: the IMF showed concern over the restrictions placed by some countries on export of food and fertilizer, which might intensify the global inflation and market volatility. The recent decision taken by India to ease the restriction it had placed on wheat exports and allow some exports was praised by the IMF.

Since the conflict in Ukraine about 30 countries have cut exports of commodities, including food and fuel, a senior International Monetary Fund official observed.

Gerry Rice, IMF spokesperson at a news conference on Thursday told reporters, "We are very concerned by the use of food and fertiliser export restrictions, which can exacerbate global price increases and market volatility. So, this goes beyond India".

"Our monitoring indicates that some 30 countries, in fact, have curtailed exports of commodity goods, including food and fuel, and that since the war in Ukraine began. So, we are very concerned about this. Kristalina Georgieva, IMF Managing Director, has been very vocal about this. Gita Gopinath, first Deputy Managing Director spoke about it again, yesterday," he said responding to a question on India.

"On India, we welcome India's decision recently to relax its originally announced ban and allow some wheat exports to proceed, including the already contracted shipments and exports to countries with food security needs. And we hope to see further relaxation of bans, and again, not just by India, but also by all countries who have imposed them," Rice said.

Indian announced last month a ban on wheat exports to curb high prices amid fears that the scorching heat wave could affect wheat production, according to the New Indian Express.

The UN Food agency has said that wheat prices in the international market have risen sharply following India's announcement of a ban on exports of major cereals, and lower production potential in Ukraine following the Russian occupation.

Later, this ban was eased by the government of India and allowed the consignments already with customs on or before May 13 to proceed.

V Muraleedharan, Minister of State for External Affairs made the remarks at a Ministerial Meeting on the 'Global Food Security Call to Action' chaired by US Secretary of State Antony Blinken under the US Presidency of the UN Security Council in May that India is committed to effectively mitigating such adverse impacts on food security and cushions those vulnerable from the rapid changes in the global market.

"In order to manage our own overall food security and support the needs of neighbouring and other vulnerable developing countries, we have announced some measures regarding wheat exports on May 13, 2022," he said.

"Let me make it clear that these measures allow for export on the basis of approvals to those countries who are required to meet their food security demands. This will be done at the request of the concerned governments. Such a policy will ensure that we will truly respond to those who are most in need," he added, emphasising that India will play its due role in advancing global food security.