India bans wheat flour exports to lower local prices: To lower costs in the domestic market, the Indian cabinet authorized limits on the export of wheat flour.
Due to a heat wave that reduced production and caused local prices to reach an all-time high, the government banned the export of wheat in mid-May.
According to the government, this embargo increased the demand for Indian wheat flour, resulting in a 200% increase in exports between April and July last year and in local market prices.
It said in a statement that “a policy was in place not to prohibit or impose limitations on the export of wheat flour.” Therefore, a partial revision of the strategy was necessary “to preserve food security and contain rising costs”.
In India, the world’s second largest wheat producer, the price per ton rose this week to a record 24,500 rupees ($307).
In the wake of the unexpected export embargo imposed by the government on May 14, which dashed expectations that India would be able to fill the market gap created by declining exports from the Black Sea area after Russia invaded Ukraine in February, that figure was nearly 20% from previous lows. .
India had planned to ship a record 10 million tonnes this year before the embargo. That would have mostly gone to other emerging nations like Thailand, the Philippines and Indonesia.
In addition to the adverse effects of the heat wave on crops, providing free food to an estimated 800 million people during the Covid-19 outbreak has put pressure on India’s huge wheat reserves, which were meant to be a buffer. against hunger.