Thursday, 7 July, 2022

Wheat prices hit record high in international market after Indian export ban

Wheat prices hit record high in international market after Indian export ban

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Wheat prices surged to a new record high on  Monday after India decided to ban exports of the commodity as a heatwave hit  production.

The price jumped to 435 euros ($453) per tonne as the European market opened.

Global wheat prices have soared on supply fears since Russia's February  invasion of agricultural powerhouse Ukraine, which previously accounted for  12 percent of global exports.

The spike, exacerbated by fertiliser shortages and poor harvests, has fuelled  inflation globally and raised fears of famine and social unrest in poorer  countries.

India, the world's second-largest wheat producer, said on Saturday that it  was banning exports after its hottest March on record.

New Dehli said factors including lower production and sharply higher global  prices meant it was worried about the food security of its own 1.4 billion  people.

Export deals agreed before the directive issued on May 13 could still be  honoured but future shipments needed government approval, it said.

However, exports could also take place if New Delhi approved requests from  other governments "to meet their food security needs".

India, which possesses major buffer stocks, previously said it was ready to  help fill some of the supply shortages caused by the Ukraine war.

The export ban drew sharp criticism from the Group of Seven industrialised  nations, which said that such measures "would worsen the crisis" of rising  commodity prices.