Global wheat prices soar after India bans export

India: On 13th May 2022, India, world’s second largest wheat producer, said it was banning private exports of wheat to manage its food security which is “at risk”.

Following India’s decision, wheat prices leapt a record 6% on within couple of days. This intensifies global food crisis as many countries depend on India for wheat supplies amid Russia Ukraine war. But the South Asian country has kept a window open for overseas shipments only on the specific request of a foreign government to “meet their food-security needs”.

Analysts suggest, this move to ban overseas sales will worsen a global food shortage and could drive up prices even more with Russia and Ukraine at war, who account for almost a third of the world’s total wheat exports.

Financial Times report shows that wheat futures traded in Chicago Board of Trade rose by 5.9% to $12.47 a bushel (approximately 27 kg), while overall prices of wheat has risen more than 60% in 2022.

According to AFP report, in Europe, wheat prices surged from €422 per tonne to €435 at the benchmark Euronext market.