India is the worlds second largest producer of wheat.
Bloomberg writer Pratik Parija reported today that, “India prohibited wheat exports that the world was counting on to alleviate supply constraints sparked by the war in Ukraine, saying that the nation’s food security is under threat.
Exports will still be allowed to countries that require wheat for food security needs and based on the requests of their governments, India’s Directorate General of Foreign Trade said in a notification dated May 13. All other new shipments will be banned with immediate effect.
“The decision to halt wheat exports highlights India’s concerns about high inflation, adding to a spate of food protectionism since the war started. Governments around the world are seeking to ensure local food supplies with agriculture prices surging. Indonesia has halted palm oil exports, while Serbia and Kazakhstan imposed quotas on grain shipments.”
The Bloomberg article explained that, “Shipments with irrevocable letters of credit that have already been issued will still be allowed, according to the latest notification. Traders have contracted to export 4 million tons so far in 2022-23, the food ministry said on May 4. After Egypt, Turkey has also given approval to import wheat from India, it said.”