The Indian government has decided to “prohibit the export of wheat due to a heat wave that has curtailed production” by raising local prices to their highest level ever.
The government indicated that it “will continue to allow shipments of wheat with letters of credit already issued and to those countries requesting shipments to meet their food security needs,” Reuters reported.
Global buyers are relying on India for wheat supplies after exports from the Black Sea region declined following the start of Russian military operations in Ukraine in late February.
Prior to the ban, India planned to ship 10 million tons this year. The ban could push global wheat prices to new records and affect poor consumers in Asia and Africa.
Rising food and energy prices pushed India’s annual retail inflation to an 8-year high in April, bolstering economists’ view that the central bank will have to hike interest rates further to rein in prices.
Source: El Nashra