India restricted wheat exports to stop “manipulators from China," government sources told CNBC-TV18 on Saturday, a day after the government halted the export as part of measures to control rising domestic prices.
Industry sources say Chinese traders were trying to manipulate the global market and Indian wheat will now go to needy countries.
“India wants to ensure fair proper use of Indian wheat stocks to address global needs, particularly of the most needy countries. The move will crush attempts to hoard Indian wheat for price manipulation,” sources said.
The move will crush attempts to hoard Indian wheat for price manipulation and the decision will counter food inflation, they said.
However, the export shipments for which irrevocable letters of credit (LoC) have been issued on or before the date of this notification will be allowed, the Directorate General of Foreign Trade (DGFT) said in a notification dated May 13.
It also clarified that wheat exports will be allowed on the basis of permission granted by the government to other countries to meet their food security needs and based on the request of their governments.