Wheat Prices may surge in Future.
India Bans Export of Wheat, Likely to Increase the Prices in Pakistan.
Islamabad: Inflation is going to be the world wide problem in the Post-Covid world which further has been fueled with the Ukraine-Russia War. The Post-Covid world poses many challenges to each country. From Germany to India, the United States to Pakistan, all are in the trap of high prices. Where Pakistan is being worried for wheat imports at lower prices due to the ongoing current alarming economic situation and unfavorable climate condition, India has also recently banned wheat export in order to fulfill its domestic demand. The recent report from New Delhi stated that the ban on export is the result of the Ukraine-Russia war and this decision has to be made. India being the second largest producer of wheat in the world, farmers of India are not satisfied with the decision since domestic prices of wheat have slumped to around 2000 rupees from 2300 rupees per 100 kg. Since Russia and Ukraine export cut, the supply for the product in the international market is also slugged and fear the shortage to meet the demand. This also has implications for Pakistan since Pakistan also imports wheat and may face a more disturbed balance of payment with high prices.
The wheat grower in India demands the government to set a minimum price and not to put the price of wheat on conventional market price determining rules. The setback of cutting export is huge and unbalanced with the prevailing market price of wheat.
