New Delhi: The Government on Monday cancelled permission for exporting up to 9 lakh tonnes of wheat, just 10 days after easing the ban on overseas shipment of the food grain.
The Directorate General of Foreign Trade (DGFT) in a notification issued on Monday said it was rescinding its July 3 notification, which effectively brings the ban back in place.
On July 3, it had said: "The export of wheat shall be limited to 3 lakh tonnes each through MMTC, PEC and STC, respectively, up to March 31, 2010."
However, the DGFT has so far not withdrawn the go-ahead on the export of up to 6.5 lakh tonnes of wheat products by March-end next year.
The Government had slapped a ban on the export of wheat and wheat products in 2007 to boost domestic supply.
The wheat export is cancelled with immediate effect, the DGFT notification said.
An Empowered Group of Ministers on food in the previous Government had agreed to allow exports of wheat and wheat products up to 20 lakh tonnes after May 15 this year, as the Government had enough reserves.
Commodity analysts said the forecast of a "below-normal" monsoon and the proposed Food Security Act might have prompted the Centre to hold back its earlier decision.
"It's a preventive step by the government because if the production of paddy, a major Kharif crop, gets hit due to 'below-normal' monsoon, the consumption of wheat is set to rise. Moreover, it also has to meet its commitment under the proposed Food Security Act," Commodity brokerage firm Karvy Comptrade's Research Head Harish G said.
The Government had earlier relaxed the ban apparently to ease out some stocks to create space for fresh crops. However, with monsoon yet to present a clear picture, fears of a dent in production during the Kharif season could have stopped the Centre from going ahead with its plan to export wheat, an industry expert said.
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