Farming News - Global wheat prices jump after India export ban
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Global wheat prices jump after India export ban
The price of wheat has jumped on international markets after India banned the export of the staple cereal.
The benchmark wheat index rose as much as 5.9% in Chicago, the highest it has been in two months.
The export ban comes after a heatwave hit India's wheat crops, taking domestic prices to a record high.
The cost of everything from bread and cakes to noodles and pasta has risen in recent months as wheat prices soared on world commodity markets.
India's government said it would still allow exports backed by letters of credit that have already been issued, and to countries that request supplies "to meet their food security needs".
Government officials also said the ban was not permanent and could be revised.
However, the decision has been criticised by agriculture ministers from the Group of Seven (G7) nations meeting in Germany.
"If everyone starts to impose export restrictions or to close markets, that would worsen the crisis," German food and agriculture minister Cem Ozdemir said.
The G7 Are the so called countries which dominate global trade and the international financial system. They are Canada, France, Germany, Italy, Japan, the UK and the US.
Although India is the world's second-biggest wheat producer, it has not previously been a major exporter as most of its crop is sold on domestic markets.
But Ukraine's wheat exports plunged after the Russian invasion. And with droughts and floods threatening crops in other major producers, commodity traders were expecting supplies from India to make up for part of the shortfall.
Just a week ago, senior officials from India's commerce ministry and Prime Minister Narendra Modi's statement that "India was ready to feed the world."
Global food prices hit a fresh record high in March after the Ukraine war caused a "giant leap", according to the United Nations (UN).
The UN said that global food prices eased slightly in April but remain almost 30% higher than the same time last year.
Source:BBC