India has banned wheat exports due to the sudden surge in grain prices in the world market, a situation that the Indian government said would threaten the country’s food security. “The wheat export policy is prohibited with immediate effect,” except for shipments “for which an irrevocable letter of credit has already been issued prior to this notice,” the DirectorateGeneral for Foreign Trade said in a statement released Friday evening.
This decision by the Indian government was mainly motivated by the conflict in Ukraine and the heat waves that affected grain production in the country. India’s General Directorate of Foreign Trade has stipulated that the Indian government can issue special permits to export wheat to countries threatened by food shortages, thereby meeting their needs.
The text states that the measure was adopted, “Recognizing the Government of India’s commitment to the food security requirements of India, neighboring countries and other vulnerable developing countries adversely affected by sudden changes in the world food market and lacking adequate access to supplies of wheat.” “.
The announcement comes after India’s Commerce Ministry on Thursday set a target for this fiscal year of 10 million tonnes of wheat for export.
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In the last fiscal year 20212022, India surpassed its wheat export record, reaching seven million tons of this grain worth more than $2,000 million (€1,920 million), according to the DirectorateGeneral for Trade.
The wheat export ban contradicts claims by Indian Prime Minister Narendra Modi last April when he said India could feed the rest of the world if the World Trade Organization (WTO) gave it permission to do so. India is the secondlargest wheat producer, harvesting around 107 million tons annually, accounting for 13.5% of world production, according to Indian Ministry of Commerce data.
However, most of this harvest is destined for domestic consumption.
The price of wheat on the world market has skyrocketed since Russia’s invasion of Ukraine began on February 24, as the two countries involved in the conflict account for about 30% of world exports of this grain. The rising cost of wheat, along with other food items and oil, pushed India’s inflation rate up to 7.79% in April, the highest since May 2014.
Additionally, India has been hit by several severe heatwaves in recent weeks, reaching 47 degrees Celsius in some parts of the country, which has devastated its wheat fields and reduced crop yields.