India’s immediate ban on wheat exports sparks fears of another surge in global wheat prices

India on the 13th announced an immediate ban on wheat exports, citing threats to national food security, raising concerns that global wheat prices will surge again.

 

India’s Congress on the 14th criticized the government’s ban on wheat exports, calling it an “anti-farmer” measure.

 

According to Agence France-Presse, the G7 agriculture ministers on the 14th local time condemned India’s decision to temporarily ban wheat exports. 

 

“If everyone starts to impose export restrictions or close markets, it will make the crisis worse,” Germany’s Federal Minister of Food and Agriculture told a news conference.

 

India, the world’s second-biggest wheat producer, had been counting on India to make up the shortfall in wheat supplies since the outbreak of the Russian-Ukrainian war in February led to a sharp drop in wheat exports from the Black Sea region. 

 

However, in India, the temperature suddenly and sharply rose in mid-March, affecting the local harvest. A dealer in New Delhi said India’s crop production may fall short of the government’s forecast of 111,132 metric tons, and only 100 million metric tons or less.

 

“The ban is a shock… We expected exports to be restricted in two to three months, but the inflation figures seem to have changed the government’s mind,” said a Mumbai-based dealer for a global trading company.

 

WFP executive director Beasley urged Russia on Thursday (12th) to reopen Ukraine’s Black Sea ports, otherwise millions of people will die due to food shortages around the world. He also pointed out that Ukraine’s important agricultural products are now stuck in ports and cannot be exported, and these ports must be operational within the next 60 days, otherwise Ukraine’s agriculture-centric economy will collapse.

 

India’s decision to ban wheat exports highlights India’s fears of high inflation and fuels protectionism since the start of the Russia-Ukraine conflict to secure domestic food supplies: Indonesia has halted palm oil exports, and Serbia and Kazakhstan have Exports are subject to quota restrictions. 

 

Grains analyst Whitelow said that he was skeptical about India’s expected high production, and due to the current poor winter wheat situation in the United States, French supplies are about to dry up, Ukraine’s exports are blocked again, and the world is seriously short of wheat.

 

Ukrainian ranks among the top five global exports of a variety of agricultural products, including corn, wheat and barley, according to USDA data; it is also a major exporter of sunflower oil and sunflower meal. In 2021, agricultural products accounted for 41% of Ukraine’s total exports.
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Post time: May-18-2022