India has banned exports of wheat effective immediately, citing a risk to food security, partly due to the war in Ukraine and as a scorching heatwave curtailed output and domestic prices hit a record high.
India’s Directorate General of Foreign Trade said in a notification dated May 13 that the exports will still be allowed to countries that require wheat for food security needs and based on the requests of their governments.
All other new shipments will be banned with immediate effect.
Wheat prices in India have risen to record highs, in some spot markets hitting 25,000 rupees ($320) per ton, well above the government’s minimum support price of 20,150 rupees.
In March Hungary announced it would ban all grain exports.
More details of this report from Channel News Asia:
India banned wheat exports on Saturday (May 14) days after saying it was targeting record shipments this year, as a scorching heat wave curtailed output and domestic prices hit a record high.
The government said it would still allow exports backed by already issued letters of credit and to countries that request supplies “to meet their food security needs”.
The move to ban overseas shipments was not in perpetuity and could be revised, senior government officials told a press conference.
Global buyers were banking on supplies from the world’s second-biggest wheat producer after exports from the Black Sea region plunged following Russia’s Feb 24 invasion of Ukraine. Before the ban, India had aimed to ship a record 10 million tonnes this year.
The officials added that there was no dramatic fall in wheat output this year, but unregulated exports had led to a rise in local prices.
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Sources: TheGatewayPundit, Channel News Asia