India has allowed the export of 2.5 million metric tons of wheat and an additional 500,000 tons each of wheat products and sugar in a bid to stabilize domestic markets and ensure financial returns for farmers.
The move comes after thousands of farmers staged demonstrations last week, alleging that the government had compromised their interests under the interim US-India trade framework.
The federal government said that the aim was to address supply and price trends, following a review of current market conditions.
This decision marks the latest in a series of measures taken by the government to support local farmers, who have been protesting over the trade deal with Washington.
In November last year, the government allowed exports of 1.5 million tons of sugar for the season that began on October 1, and in January this year, it approved exports of 500,000 tons of wheat flour and other wheat products.
Traders say that the permission to export is likely to improve sentiment in the local market, but fulfilling the allocated volumes may be difficult due to weak global prices.
The Indian government has also been working to address supply chain issues and ensure a stable food supply for domestic consumers.
With India's wheat being offered at around $280 per ton free-on-board basis, compared with about $200 per ton for Argentine supplies, the country is facing significant challenges in meeting its export targets.
This move is seen as a step towards supporting local farmers amid protests over the trade deal with the US, but it remains to be seen how effective it will be in addressing the concerns of the farming community.
The government's move to allow wheat exports is seen as a step towards supporting local farmers amid protests over the trade deal with the US.
