India Bans Wheat Exports, Citing Food Security and Soaring Prices
Share this @internewscast.com



India’s Directorate-General of Foreign Trade banned wheat exports on Friday, causing market prices to skyrocket around the world and prompting expressions of grave concern from humanitarian groups. 

Only a month ago, Indian officials were boasting of plans to step up and replace lost wheat shipments from the Russia-Ukraine war.

Wheat prices hit a two-month high on Monday as markets reacted to Friday’s surprise announcement, which cited spiking global prices, unexpected shortfalls in production due to hot weather, and India’s concerns over domestic food security to justify banning exports.

“Export will be allowed in case of shipments where an irrevocable letter of credit is issued on or before the date of notification. Export will be allowed on the basis of permission granted by the government of India to other countries to meet their food security needs and based on the request of the governments,” the Indian government notice said.

Only a week ago, Indian Food Secretary Sudhanshu Pandey downplayed concerns of an export ban, claiming India had a vast surplus stock of wheat despite disappointing production due to a two-month heatwave. Soaring food inflation evidently played a role in making the Indian government change its mind.

The Deccan Herald noted India sent delegations to nine countries to discuss expanding wheat exports only last week.

Reuters reported on Monday that India’s export ban was imposed so suddenly that 1.8 million tonnes of grain are trapped at ports. The owners of the grain “may have to re-sell those cargoes into the weaker domestic market, which has been under fresh price pressure since the export ban news emerged.” The owners of the cargo will also incur reloading and transportation costs.

“Vessel loading has stopped at a few ports. Thousands of trucks are waiting to unload at ports without any clarity,” a Mumbai-based trader reported.

“The Commerce Ministry and even state governments were helping exporters. Exports were profitable, so we never thought the government would do something like this,” a dealer with a global trading house complained.

U.S. and European officials said they were deeply concerned about worldwide food security after India announced its export ban. Agriculture ministers from the Group of Seven (G7) nations condemned India’s announcement immediately.

“If everyone starts to impose export restrictions or to close markets, that would worsen the crisis. We call on India to assume its responsibility as a G20 member,” German agriculture minister Cem Ozdemir said.

Share this @internewscast.com
You May Also Like

Troup County Sheriff’s Office turns over controversial video from Tik Tok influencer

LaGRANGE, Ga. (WRBL) – The Troup County Sheriff’s Office has confirmed that…

CBS Evening News, June 30, 2022

CBS Evening News, June 30, 2022 – CBS News Watch CBS News…

Neil Kerley Wife: How Much Was His Net Worth At Death? Find Out How He Died

Why Is Tim Tuttle Leaving 93Q? Know What Happened To Him Why…

NATO vows to guard ‘every inch of territory’ as Russia fumes

MADRID – An unstable world could get even more dangerous if NATO…

Nancy Pelosi takes Communion in Vatican despite her support of abortion rights

House Speaker Nancy Pelosi received Communion on Wednesday during a papal mass…

Anthony Williams Convicted of Jan. 6 Felony Obstruction

Anthony Williams (images via FBI court filings). A Michigan man who said…

Tristyn Bailey murder was ‘100% premeditated,’ friend said

New documents include friend’s account of the night Aiden Fucci allegedly stabbed…

Jacksonville women’s health clinic says patients have doubled since Roe ruling

JACKSONVILLE, Fla. – In the week since the Supreme Court’s decision on…