India bans wheat exports from now, or further pushes up global food prices | G7 agriculture ministers condemn India: If everyone starts to impose export restrictions or close markets, it will make the crisis worse
CCTV News, Xinhua News Agency, India’s Ministry of Commerce and Industry announced on the 13th that the export of wheat will be banned on the grounds of ensuring domestic food security. Analysts worry that the ban could further push up global food prices.
India’s Ministry of Commerce and Industry adjusted its wheat export policy on the 13th, mainly due to the “sudden rise in global wheat prices.” The share of wheat exports that had been licensed before the ban was issued will not be affected, and future government-approved wheat exports will also be exempt.
A Mumbai-based export dealer told Reuters that while they expected wheat exports to be curtailed, “it seems that inflation has changed the government’s mind”.
India’s domestic inflation has been high recently. In April, the consumer price index (CPI) rose to 7.79%, the highest level in the past 8 years; the Indian food inflation index also reached the highest level in the past 17 months in April.
According to Reuters, India’s domestic wheat prices hit a record high, trading at 25,000 rupees (about 2,190 yuan) a tonne in some spot markets, far higher than the government’s minimum 20,150 rupees (1,765 yuan) per tonne. protection price. Rising fuel prices, rising labor costs, and higher transportation and packaging costs have also spurred higher wheat flour prices in India.
In addition, India experienced unusually high temperatures in mid-March. The Indian government lowered its grain production forecast in May to 105 million tons from an earlier forecast of 111 million tons.
“It’s not just wheat, but the general rise in prices raises concerns about inflation, and that’s why the government has to ban wheat exports,” said a senior Indian government official, speaking on condition of anonymity. due to due diligence.”
Global food supply chains are strained by the conflict in Russia and Ukraine. Russia and Ukraine together account for nearly 30 percent of global wheat exports, Reuters data shows. The Associated Press data show that since the beginning of this year, global wheat prices have risen by more than 40%.
India is the world‘s second-largest wheat producer, but the wheat produced is mainly for the domestic market and not a major wheat exporter. However, India’s wheat exports rose sharply in the last fiscal year, and analysts believe the latest export ban could also push up global grain prices.
According to the “Hindustan Times” report on the 10th, in the 2021-2022 fiscal year that ended in March, India’s total wheat exports reached a record high of 7.85 million tons, an increase of 275% year-on-year. India exported 1.4 million tons of wheat in April, a record high; in May, it has also signed a wheat export agreement of about 1.5 million tons.
“The Indian export ban will push up global wheat prices,” said a wheat exporter.
G7 agriculture ministers condemn India’s temporary ban on wheat exports
According to Agence France-Presse reported that the Group of Seven (G7) agriculture ministers on the 14th local time condemned India’s decision to temporarily ban wheat exports. “If everyone starts imposing export restrictions or closing markets, it will make the crisis worse,” German Federal Food and Agriculture Minister Jem Ozdemir told a news conference in Stuttgart.
G7 says Russia-Ukraine conflict could have serious consequences for world food security
The G7 said on the 14th that the conflict between Russia and Ukraine could have serious consequences for world food security, and restrictions on Ukraine’s grain exports have further exacerbated global food tensions.
The G7 agriculture ministers held a meeting in Stuttgart, Germany, from the 13th to the 14th to discuss global food security issues caused by the conflict between Russia and Ukraine. A communiqué was issued after the meeting, calling on Russia to stop its crackdown on Ukrainian infrastructure, especially ports and railways, and to allow Ukraine to export at least 25 million tons of grain.
German Agriculture Minister Özdemir said the current situation requires the world to unite in the fight against hunger. At the same time, efforts to combat climate change and protect biodiversity should not stop. Currently, tackling climate change, food security and peace are the top three priorities.
Germany is the rotating presidency of the G7 this year. The German government announced on the 14th that due to the conflict between Russia and Ukraine, about 43 million people around the world are facing the threat of hunger.