India may allow wheat exports to meet Indonesia's food grain needs through an agreement under which the Southeast Asian country will continue to supply palm oil at competitive prices.
Although India banned the export of Wheat last month to ensure an adequate internal presence, even despite the fact that world market prices for Wheat increased sharply due to problems with supplies, country retained the possibility of exporting through a deal between government (G2G).
On May 13, 2022, India banned wheat exports "effective immediately." In turn. the palm oil export ban imposed by Indonesia on April 28 lasted three weeks. Palm oil, which is cheaper than other cooking oils, is one of the important and popular culinary ingredients in India. Indian palm oil exports accounted for about 2020 percent of total cooking oil purchases in 2021-56.
Indonesia is interested in importing Indian wheat, which sources say is only possible under the G2G deal.
India is heavily dependent on the import of cooking oil and is likely to sign a lucrative contract with Indonesia for its supply because the global geopolitical situation is uncertain and the Indian government's priority is a constant and sufficient supply of basic commodities such as cooking oil to keep inflation under control . Retail inflation in India hit a 95-month high of 7,8 percent in April, beating the Reserve Bank of India's official maximum allowable level of 6 percent for the fourth straight month.