Wheat Prices Chart Record High in Global Markets After India Bans Exports
The cost of wheat soared to $453 per tonne in the global market on Monday.
Three days after India imposed a ban on the export of wheat amid a heatwave in the country, prices of the grain spiked to a record high on Monday, 16 May.
The cost of wheat soared to $453 per tonne in the global market on Monday, as per news agency AFP. The unprecedented inflation is being witnessed after the price of the grain was also affected by the Russia-Ukraine war.
Ukraine was the sixth largest wheat exporter in 2021, accounting for 10 percent of the global market share, as per a Fortune report.
India's Wheat Export Ban
The central government on Friday, 13 May, prohibited the export of wheat with immediate effect, in a bid to ensure food security in the nation. The move has garnered criticism from the Opposition and the G7 group of nations.
"The Government of India is committed to providing for the food security requirements of India, neighbouring and other vulnerable developing countries which are adversely affected by the sudden changes in the global market for wheat and are unable to access adequate wheat supplies," the official statement issued by the Directorate General of Foreign Trade (DGFT) read.
This comes after a huge crop loss was recorded in the country due to the heatwave in March.
The government is also allowing exports to other countries that import wheat to meet their food security needs, based on requests made by their governments and prior permission by the Government of India.
Meanwhile, agriculture ministers from the Group of Seven (G7) industrialised nations on Saturday condemned India's decision to ban unapproved wheat exports.
The Chinese state media, on Monday, defended India amid criticism by the G7 nations, saying that blaming India will not solve the global food problem.
Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.