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Source: https://www.arabnews.com/node/2082051/world
India halts wheat exports, says food security is at risk
Updated 9 sec ago
Sanjay Kumar
May 14, 2022 22:01
Decision by world’s second-largest producer adds to global supply fears in wake of Ukraine conflict
Export ban comes as heat wave hits wheat output and domestic prices reach record highs
NEW DELHI: India has banned wheat exports that the world was counting on to alleviate supply disruptions sparked by the war in Ukraine, saying that its own food security is threatened by a sudden spike in global prices of the grain.
The South Asian nation is the world’s second-largest wheat producer. Though India consumes most of the wheat it produces, for months it has been seen as a country that could help make up for the shortage of global supply affected by the Russian invasion of Ukraine, which has disrupted wheat production in both major suppliers.
India’s Ministry of Commerce and Industry announced the export ban late on Friday. The ministry said in a notice that the decision was taken “to manage the overall food security of the country, and to support the needs of the neighboring and other vulnerable countries.”
Exceptions apply to shipments already issued letter of credit or for countries that require wheat “to meet their food security needs and based on the requests of their governments,” the notice said.
The announcement follows a surge in inflation to 7.79 percent in April, with wheat prices alone rising to record highs in India. New Delhi also had to lower its estimated wheat output this year after earlier targeting a record 111 million tons, due to the effect of a heat wave on production.
“What has happened is that procurement of wheat by the government has come down and the production of wheat has also come down,” New Delhi-based economist Arun Kumar told Arab News...
India halts wheat exports, says food security is at risk
Updated 9 sec ago
Sanjay Kumar
May 14, 2022 22:01
Decision by world’s second-largest producer adds to global supply fears in wake of Ukraine conflict
Export ban comes as heat wave hits wheat output and domestic prices reach record highs
NEW DELHI: India has banned wheat exports that the world was counting on to alleviate supply disruptions sparked by the war in Ukraine, saying that its own food security is threatened by a sudden spike in global prices of the grain.
The South Asian nation is the world’s second-largest wheat producer. Though India consumes most of the wheat it produces, for months it has been seen as a country that could help make up for the shortage of global supply affected by the Russian invasion of Ukraine, which has disrupted wheat production in both major suppliers.
India’s Ministry of Commerce and Industry announced the export ban late on Friday. The ministry said in a notice that the decision was taken “to manage the overall food security of the country, and to support the needs of the neighboring and other vulnerable countries.”
Exceptions apply to shipments already issued letter of credit or for countries that require wheat “to meet their food security needs and based on the requests of their governments,” the notice said.
The announcement follows a surge in inflation to 7.79 percent in April, with wheat prices alone rising to record highs in India. New Delhi also had to lower its estimated wheat output this year after earlier targeting a record 111 million tons, due to the effect of a heat wave on production.
“What has happened is that procurement of wheat by the government has come down and the production of wheat has also come down,” New Delhi-based economist Arun Kumar told Arab News...
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