Wheat prices hit record high following India's export ban

The price which was already high in the wake of Russia's invasion of major wheat exporter Ukraine jumped to 435 euros

FPJ Web DeskUpdated: Monday, May 16, 2022, 04:38 PM IST
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AP

Wheat prices on Monday surged to a record high after India decided to ban exports of the commodity as a heatwave hit production, according to new agency AFP.

The price which was already high in the wake of Russia's invasion of major wheat exporter Ukraine jumped to 435 euros ($453) per tonne as the European market opened.

Last week, the Indian government amended the export policy of wheat by putting its export under the "prohibited" category. The order that was rolled out by the Ministry of Commerce stated that the government has banned the wheat exports with "immediate effect".

Meanwhile, China on Sunday came to India's defence after G7's criticism over the decision to regulate the export of wheat, saying that blaming developing countries like India won't solve the global food crisis.

Global Times (GT), a Chinese government outlet said, "Blaming India won't solve the food problem." "Now, the agriculture ministers from G7 urge India not to ban wheat exports, then why won't G7 nations themselves move to stabilize food market supply by hiking their exports?" asked an editorial published in GT.

"Although India is the second-largest wheat producer in the world, it accounts for only a small part of global wheat exports. By contrast, some developed economies, including the US, Canada, the EU and Australia, are among major exporters of wheat," it added.

India on its part issued a press statement on Saturday where it said the decision to restrict wheat exports will control food prices and strengthen the food security of India and countries facing a deficit, and that India remains a reliable supplier as it is honouring all contracts.

He said that the control order serves three main purposes: "It maintains the food security for the country, it helps others who are in distress, and maintains India's reliability as a supplier," he said.

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