Wheat prices are rising worldwide and have reached a new record high. This is how the world markets reacted to the introduction of an export restriction by India, which they imposed in view of an impending bad harvest in order to guarantee the country’s supplies.
Wheat prices rose to a new record high on Monday after India decided to ban exports of the grain as a heatwave affected production. The price climbed to 435 euros per ton when the European market opened.
The price of red winter soft wheat deliveries in July increased by 4.2 percent.
New Delhi said over the weekend it would cut exports as India, the world’s second-largest wheat producer, experienced its warmest March on record. The authorities expressed concerns about the food security of the country’s 1.4 billion people amid reduced production and soaring world prices.
However, export agreements made before the directive issued on May 13 can still be honored. However, future exports must be approved by the government, according to New Delhi.
The export ban drew sharp criticism from the Group of Seven Developed Nations, which said such measures exacerbated the crisis of soaring food prices.
India, which has large reserves, agreed to help offset some of the supply shortages caused by the Russo-Ukrainian conflict. With a share of around 30 percent in global wheat exports, the two countries are important suppliers on the international market. The situation has raised fears that the world may be on the brink of a major food crisis.