Grain dealers are debating the impact of lower-than-expected wheat production on export demand and inadequate procurement. A notion circulated that the Centre was considering imposing an export tax on food grains. Some people believed the government could accept $10 a tonne, while others believed it could easily collect $20-25 per tonne.
Those familiar with the mathematics at the Centre, on the other hand, claim that any suggestion for an export tax will be rejected by the Commerce Ministry. “How can the Commerce Ministry agree to something that benefits the Finance Ministry and puts the Minister in Charge in the spotlight?” enquired a trader familiar with the Union Cabinet’s activities. There are currently no plans to limit wheat exports, according to Food Secretary Sudanshu Pandey.
Exporters of Tamil Nadu not too happy
The DMK government completed one year in office during the weekend. The export fraternity does not seem happy with the way the State government has been functioning. “The previous State government used to hold meetings frequently, at least once in three months, to encourage exports and tackle any problem,” said an exporter. Now, no meetings are held by State officials with exporters. Even if some meeting is arranged, it gets cancelled all of a sudden. “The previous government was certainly helpful during the Covid pandemic as it worked in tandem with the Centre,” said the exporter.