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Disappointed over ban on wheat export, its like ‘indirect tax’ on farmers – BSK

Farmers' group BKS disappointed over ban on wheat export, says its 'indirect tax' on farmers

Farmers’ group BKS disappointed over the ban on wheat export, says it’s an ‘indirect tax’ on farmers.

Farmers’ group Bharat Krishak Samaj (BKS) was disappointed about the ban on wheat exports on Saturday. They said that limiting shipments of farm goods is like putting an ‘indirect tax’ on farmers.

It was said that farmers won’t be able to take advantage of high prices around the world, and India will lose its reputation as a reliable trading partner.

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‘India no longer lets wheat leave the country. Restrictions on agricultural exports are an indirect tax on farmers in countries where they are put in place’ Bharat Krishak Samaj Chairman Ajay Vir Jakhar told PTI.

Farmgate prices are kept low by policy, and farmers can’t take advantage of rising commodity prices because they have to pay more for their inputs, he said.

‘Today, traders and farmers who hold wheat stocks will both lose money. Farmers don’t trust market reforms because of these kinds of restrictions on exports. It makes it harder to trust people,’ Jakhar said.

He said that the UN had also asked countries not to make sudden announcements because food prices were going up so fast around the world.

He also said that India’s reputation as a trading partner goes down. ‘We are in this mess because the government doesn’t have good real-time data and analytics,’ he said.

Jakhar said that his group has been arguing for a long time that farmers should be compensated when they lose money because of government policies like they do in the USA. ‘I hope it will happen one day,’ he said.

In order to keep prices from going up at home, India has banned wheat exports with immediate effect, according to an official notice.

But export shipments will still be allowed if irrevocable letters of credit (LoC) were issued on or before the date of this notice.

The government has changed its estimate for wheat production by 5.7%, from 111.32 million tonnes for the crop year ending in June 2021-22 to 105 million tonnes. This is because the early start of summer has hurt the crop’s productivity.

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In the 2020-21 crop year, India made 109.59 million tonnes of wheat (July-June). During the last fiscal year, the country sent out 7 million tonnes of wheat. India wanted to send out 10 million tonnes of goods this fiscal year.

Bharat Krishak Samaj (BKS) is one of India’s most important non-partisan farmer groups. It works for farmer prosperity and for food systems that are healthy, sustainable, fair, and inclusive for both farmers and consumers. On April 3, 1955, Dr. Panjabrao S. Deshmukh founded the BKS.