On May 13, local time, the Indian government announced that the country’s domestic wheat prices reached an all-time high due to persistent high temperature weather leading to reduced wheat production. To safeguard domestic demand, India will immediately ban wheat exports. But the country will still allow some exports to fulfill existing contracts and provide support to countries with food security needs.
The Indian side announced the decision quite suddenly, just days after the country also said that this year’s wheat exports are expected to reach a record 10 million tons.
Since the outbreak of the Russia-Ukraine conflict, global grain prices have risen, and India, the world‘s second-largest wheat producer, has seen a surge in wheat exports. India was not one of the world‘s major wheat exporters, but some countries turned to India for supplies after a sharp drop in exports from Ukraine and the surrounding Black Sea region. In the 2021 fiscal year (April 1, 2021 – March 31, 2022), India’s wheat exports reached 7 million tons, a year-on-year increase of more than 250%.
Analysts pointed out that India’s wheat export ban may further increase international food prices and deal a heavy blow to the poor in Asia and Africa.
India’s ban on wheat exports adds fuel to global food prices? Click on the video to see what it is!