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Original title: India banned wheat export market worrying about grain prices rising again
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.
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.
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.
A wheat export dealer said: “India’s export ban will push up global wheat prices.” (According to Xinhua News Agency)
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Responsible editor: Wang Meng