In India, the National Food Security Act (NFSA), 2013, and the Pradhan Mantri Garib Kalyan Yojana (PMGKAY) are key instruments in the government’s pursuit of food security. The NFSA serves as a legal guarantee for subsidized food grains to two-thirds of the population, while PMGKAY was a temporary measure introduced during the COVID-19 pandemic to distribute additional free grains to NFSA beneficiaries.
Consideration to Lift the Ban on Wheat Exports
Lately, there has been speculation about the possibility of lifting the ban on wheat exports. This move is being considered after assessing the wheat stock in the central pool and its distribution requirements under the NFSA. The discontinuation of PMGKAY has led to predictions of decreased wheat distribution.
The Current Scenario: Wheat Production and Distribution
India is currently the world’s second-largest wheat producer, trailing only China. Despite this, India contributes less than 1% to global wheat trade, reserving most of its yield to meet domestic needs, particularly for subsidized food distributed to the economically disadvantaged. Major importers of Indian wheat include Bangladesh, Nepal, Sri Lanka, and UAE.
As per the Food Corporation of India (FCI), wheat stocks have been on a downward trajectory, declining by 2 million tonnes per month over the past six months, hitting a six-year low. The potential relaxation of wheat export bans is on the table once sufficient stocks are guaranteed and food security is maintained.
Measures Taken to Control Wheat Prices
To manage concerns about low wheat procurement and increasing prices, the government has launched several initiatives. These cover decreasing wheat allocation to certain states, augmenting the allocation of rice, prohibiting the export of non-basmati broken rice, and considering open market sales to stabilize prices. Wheat production is likely to see an uptick in 2023, which should enhance market supply.
Reasons Behind the Export Ban on Wheat
There were several reasons why India suspended wheat exports in May 2022. One of the primary causes was rapidly soaring global wheat prices that stressed food security, both domestically and in vulnerable neighboring countries. This decision will be reviewed based on individual countries’ requests for help in meeting their own food security needs.
The ban also precipitated a drop in wheat production following a disruptive heatwave in March-April 2022, further exacerbated by FCI’s inability to accumulate sufficient buffer stocks. Additionally, rising inflation, with the Wholesale Price Index escalating from 2.26% at the start of 2022 to 14.55% by May, and retail inflation reaching an eight-year peak of 7.79% in April, and driven by climbing food and fuel prices, played a significant role in this decision.
UPSC Civil Services Examination and Food Security
Food security in India has been a recurring theme in the UPSC Civil Services Examination over the years. Candidates are often asked to evaluate the government’s efforts in addressing challenges like hunger and poverty, and suggest improvements. They are also examined on the functioning and impact of initiatives like NFSA and PMGKAY.
The common thread running through these examinations is the perennial concern about food security and effective grain distribution in the country — a concern that continues to shape government policies and regulations pertaining to food grain production, procurement, and distribution.
