New Delhi: After India decided to ban export of wheat, prices surged to a record high on Monday. India decided to ban exports of the commodity as a heatwave hit production.
The prices, which had already spiked up in the wake of Russia’s invasion of major wheat exporter Ukraine, jumped to 435 euros ($453) per tonne as the European Markets opened.
Since Russian Invasion, global wheat prices have soared on supply fears. It has feared agricultural powerhouse of Ukraine, which previously accounted for 12 percent of global exports.
It has also impacted inflation globally. The spike, exacerbated by fertiliser shortages and poor harvests, has fuelled inflation globally and raised fears of famine and social unrest in poorer countries.
India, the world’s second-largest wheat producer. On Saturday, India has banned exports after its hottest March on record.
The nation stated that factors like lower production and sharply higher global prices meant it was worried about the food security of its own 1.4 billion people.
“Export deals agreed before the directive issued on May 13 could still be honoured but future shipments needed government approval,” it said.
If New Delhi approves requests from other governments “to meet their food security needs”, exports could take place.
India had previously said it was ready to help fill some of the supply shortages caused by the Ukraine war.