After India’s export ban, wheat prices reached new highs

wheat prices reached new highs

Wheat prices hit a new high on Monday after India opted to halt exports due to a heat wave that hampered output. As the European market opened, the price increased to 435 euros ($453) per tonne.

Since Russia’s February invasion of agricultural powerhouse Ukraine, which previously accounted for 12% of global exports, global wheat prices have risen due to supply concerns.

The increase has fueled global inflation and generated fears of hunger and social upheaval in poorer countries, which has been worsened by fertiliser shortages and bad crops.

After the hottest March on record, India, the world’s second-largest wheat producer, announced a restriction on exports on Saturday.

New Delhi expressed concern over the food security of its 1.4 billion people, citing reasons such as decreased supply and dramatically increased world prices.

Export agreements made before the May 13 decision may still be honoured, but future shipments would require government clearance, it said.

Exports could happen, though, provided New Delhi approves requests from other nations to “meet their food security demands.”

India, which has large buffer supplies, has already stated that it is willing to assist in alleviating some of the supply shortages caused by the Ukraine conflict.

The Group of Seven developed nations slammed the export prohibition, claiming that such steps would “worsen the crisis” of rising commodity prices.

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