The war in Ukraine is creating a real chaos in the market, while food supplies and shipments of the grain remains a real concern, amid rising prices
Global market is depending on India for food supplies, after shipments from the Black Sea region have dropped, since the Russian invasion of Ukraine, Bloomberg reports
India said it would ban wheat exports, the move that will add to global inflationary pressure and further strain global food supplies that have been disrupted by the war in Ukraine.
- The United Nations has warned the world faces potential food shortages.
The disruptions due to the crisis have driven up the prices of wheat and other commodities globally.
India’s wheat prices hit their highest level since 2010, Authorities say the rise in prices has led to hoarding by some wheat traders.
*Bloomberg tweet on India’s ban on wheat export
India banned wheat exports with immediate effect. The world was counting on its supply to alleviate constraints by the war in Ukraine. https://t.co/jwqvpfx0mp
— Bloomberg (@business) May 14, 2022
the Indian government lowered its wheat production estimate by 5.7% to 105 million metric tons for the crop year ending June.
The government had earlier projected wheat production at a record of about 111 million tons.
- India produced nearly 110 million tons of wheat in the previous crop year.
India is a crucial supplier of wheat to its neighbors.
Afghanistan recently received large consignments of wheat from India, while Bangladesh remains big importer of Indian wheat.
India said exports will still be allowed to countries that require wheat for food-security needs.
About 4 million tons of wheat has already been contracted for export this year, ( in total 1.1 million tons had been exported by April)
Vikram Singh, secretary of Agricultural Workers Union said that, the ban on wheat exports wouldn’t prevent hoarding by private traders. “They will continue to hoard to cash in on huge profits in the domestic and international markets amid high prices of wheat,” he said.
India had a vast surplus of food grains before the pandemic.