Restriction on agricultural exports 'indirect tax' on farmers: Bharat Krishak Samaj

NEW DELHI: Farmers' body Bharat Krishak Samaj (BKS) on Saturday expressed unhappiness over the ban on wheat exports, saying that restrictions on shipments of farm produce are an "indirect tax" on farmers.

Farmers will not be able to take advantage of high global prices, while India will lose credibility as a reliable trading partner, it said.

"Sadly, India has banned exports of wheat. Restrictions on agricultural exports are an indirect tax on farmers in countries where imposed," Bharat Krishak Samaj Chairman Ajay Vir Jakhar told PTI.

Farmgate prices get subdued by policy and farmers are unable to benefit from rising commodity prices while having to pay higher input costs, he added.

"Today not only traders but even farmers are holding wheat stock will lose out. Such export bans is the reason why farmers do not trust market reforms. It adds to the trust deficit," Jakhar said.

In view of the skyrocketing food prices in the world, he said the UN had also appealed for nations not to make sudden announcements.

India also loses credibility as a trading partner, he said.

"Lack of credible real-time data and analytics in the government is why we are in this situation," he rued.

Jakhar said his association has been advocating for long that farmers must be compensated when they suffer a loss due to government policy as is the norm in the USA.

"Hopefully one day it will happen," he said.

India has banned wheat exports with immediate effect as part of measures to control rising domestic prices, according to an official notification.

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 government has revised downwards the estimate for wheat production by 5.7 per cent to 105 million tonnes in the 2021-22 crop year ending June, from the earlier projection of 111.32 million tonnes, as the crop productivity has been affected due to the early onset of summer.

India's wheat production stood at 109.59 million tonnes in the 2020-21 crop year (July-June).

The country exported 7 million tonnes of wheat during the last fiscal.

India was looking to export 10 million tonnes this fiscal.

Bharat Krishak Samaj (BKS) is one of India's leading non-partisan farmers' organisations that is an advocate for farmer prosperity along with healthy, sustainable, inclusive and equitable food systems that benefit farmers and consumers.

BKS was established by Dr Panjabrao S Deshmukh on April 3, 1955.