India has imposed a ban on wheat exports, after lifting it brieflyearlier this month. The step was taken in the wake of worries thatpoor monsoon rains may adversely impact food production in the countrythis year.
Less than two weeks ago, ample stocks of wheatlying in state granaries had prompted the government to relax atwo-year ban on wheat exports.
But the ban was hurriedlyre-imposed Monday, amid growing worries that deficient monsoon rainswill reduce food grain output in a country where two-thirds ofagriculture is fed by annual rains which come between June andSeptember.
Concerns that wheat and rice production may sufferthis year have become acute after the north of the country - known asthe bread basket - has seen the driest June in decades. This month,the monsoon has picked up pace in the south and the west, but key wheatand rice producing regions, such as Punjab, Haryana and Uttar Pradesh,remain parched.
Wheat is sown in Winter. The low rainfall hasdepleted lakes and reservoirs, raising concerns that there may not besufficient water to irrigate crops.
D.H. Pai Panindiker headsthe independent economic research group, the RPG Goenka Foundation inNew Delhi. He says the government has decided to hold on its foodreserves to ensure there are no shortages in the months ahead.
"Ifwe are, ourselves, short, then we cannot expect any exports. Ofcourse, our stock position is comfortable. We have about 40 milliontons of rice and wheat. But, obviously, we cannot export," he said.
Inthe last two years, the government has clamped down on exports of riceand wheat, to stave off shortages and control spiraling prices. Although India is the world's second-largest producer of wheat andrice, sufficient stocks of food grains are of paramount concern in acountry of more than a billion people, nearly half of them poor.
Worriesare not confined to wheat and rice alone. There are fears thatproduction of crops such as cotton and sugar may also be affectedbecause of the deficiency in rains.
The growing concerns overfood production have prompted the prime minister to ask officials tomonitor the progress of the rains, on a daily basis.
Economists say a poor monsoon will also derail plans by the government to push for higher economic growth this year.