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This is with reference to the news-item “Remove clamps on wheat purchases” (Business Line, May 20).

The ban on export of food-grains followed escalating prices in the open market caused by scarcity by export and local reasons. The decision was a response to popular feelings and was a sound one.

The bumper crop and creation of a good buffer stock this season do not automatically justify lifting of the ban. The absence of a ban now will create conditions favourable to hoarding and export and a repeat of the earlier situation.

It is worth noting that even with the ban in place the ruling market price now of food grains is prohibitively high. Intervention by use of buffer stock is an emergency way out and cannot be a routine measure. The ban can be relaxed only after the market prices stabilise within reasonable levels.

Export of food-grains benefit only the traders and neither the farmer nor the consumer.

The global food-grain prices would tempt traders to go all out on procurement and export to gain maximum profits which will prevent adequate stocks reaching the open market.

T. R. Anandan Coimbatore

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