India Bans Export Of Wheat To Ensure Food Security, Control Prices


India Bans Export of Wheat to Ensure Food Security, Control Prices

NEW DELHI (UrduPoint News / Sputnik - 14th May, 2022) India imposed a ban on wheat exports due to a recent hike in global wheat prices, which could potentially hit food security in the country and in the region, India's Ministry of Commerce and Industry said.

On Friday, the ministry published an amendment to its export policy, citing "a sudden spike in the global prices of wheat arising out of many factors" as the Primary reason for the restriction.

"The export policy of wheat ... is 'Prohibited' with immediate effect," the ministry said.

The updated policy will not affect shipments whose irrevocable letter of credit was issued on or before the date of the notification. The export will also be allowed if Indian government grants such a permit to aid other countries with food security issues if they request it.

On May 4, the Indian authorities revised the wheat production forecast for 2021-2022, cutting it by 5.7% to 105 million tons due to early summer, which affected crop yields.

According to Tomson Phiri, UN World Food Programme spokesman, the situation in Ukraine may result in higher food prices and global hunger, as the Black Sea basin is one of the most important regions for production of grain and agricultural products. Given that Ukraine and Russia account for 30% of global exports of wheat, 20% of global exports of maize and 76% of sunflower, any disruption in their production or supplies could lead to higher prices.