Govt of India moved wheat from “Free Export” to “Prohibited” category, with immediate effect (13th May 2022), means no export of wheat will be allowed except two categories i) those who already have Irrevocable L C before notification day i.e. 13th May 2022 ii) Govt permitted export to neighbour/poor/vulnerable nations under under humanitarian sort of support.
Analysis: IN a way export is channelized now (License regime???).
Impact: CBT Wheat may shoot up next week. On Indian domestic front: distress sale from stockiest at ports who does not have ILC with them, and that distressed sale will benefit big pocket ILC buyers/permission holder buyers.
Devil lies in Details… #wheat is new cotton.
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