Wednesday, August 17, 2022

No more buying… India’s ban on wheat export comes into force with immediate effect

India is banning wheat exports as global food prices rise due to the Russo-Ukraine war.Reuters

CNN reported that from February 24 this yearRussiaSince the invasion of Ukraine, wheat exports from the Black Sea region have turned to global buyers.IndiaWheat was procured to overcome the shortage of supply. However, India is banning wheat exports due to the rise in global food prices due to the Russo-Ukrainian war.

The Department of International Trade (DGFT), Ministry of Commerce and Industry of India, issued a statement stating that the wheat export ban will be effective immediately, except for those who have an irrevocable letter of credit issued, or the Government of India. Provides export licenses to countries dependent on wheat to ensure food security.

India is the world’s second largest producer of wheat, and most of its production is for domestic consumption. The Indian government pointed out that rising wheat prices and ensuring food security in India and nearby vulnerable countries are the catalysts for revising its wheat export policy.

Sudden ban on India’s wheat exports alarm bells for global wheat supply

Compilation Lin Qixian / Massive Foreign Power

The Indian government suddenly announced on the 13th that it would immediately ban the export of wheat on the grounds that the country’s food security was at risk. The move has hit wheat supplies and could push global wheat prices to new highs, impacting low-income consumers in Asian and African countries.

Harsh heatwaves have decimated local wheat production in India, pushing prices to record highs and forcing Indian authorities to impose restrictions on wheat exports, Reuters reported. However, Indian officials said that exports would be allowed to buyers already backed by letters of credit as well as to countries “with food security needs”.

Wheat exports from the Black Sea region plummeted after the Russian-Ukrainian war broke out in late February, leaving global buyers dependent on India, the world’s second-largest wheat producer. Not long ago, India had set its wheat export target for this year at an all-time high of 10 million tonnes.

A Mumbai-based global trade dealer said, “The ban came suddenly. We (Indian government) had expected to restrict exports in two or three months, but now it seems that the inflation data has changed the mind of the government. “

India’s annual retail inflation rose to an eight-year high in April, driven by food and energy prices, bolstering economists’ belief that the Reserve Bank of India should take rates more aggressively to keep prices under check. Have to increase

India Russia

Of earlier

The Xinhua News Agency published a rarely lengthy speech by Li Keqiang about three weeks ago to talk about economic issues

finance .

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