A May 13 decision of the Government of India stated suspension of overseas sales of wheat to meet domestic demand as also to counter any situation in the wake of Ukraine-Russia conflict, both being big suppliers of wheat in the world market
India’s ban on wheat export to ensure food security in the country has caused a sense of ‘insecurity’ in the global market as wheat prices rose almost 6 per cent in the global market soon after New Delhi’s decision.
A May 13 decision of the Government of India stated suspension of overseas sales of wheat to meet domestic demand as also to counter any situation in the wake of Ukraine-Russia conflict, both being big suppliers of wheat in the world market.
India’s decision drew criticism from European nations as the agriculture ministers of the Group of Seven nations called it a measure that would make the ongoing crisis even worse.
According to Bloomberg, benchmark futures in Chicago rose as much as 5.9% to $12.475 a bushel, the highest in two months and within about $1 of the all-time high set just after Russia’s invasion. Prices have surged around 60% this year, increasing the cost of everything from bread to cakes and noodles. In Paris, milling-wheat rose 5.1% to 431.75 euros ($450) per ton, a record for most-active futures.
Even though India is second-biggest wheat producer after China, its export share stands at eighth position. On the top is Russia followed by European Union, Australia, Canada, United States, Argentina, Ukraine and India
Point to be noted that India’s position as wheat exporter is limited due to production, consumption ratio, but due to ongoing conflict between Russia and Ukraine the supply chain of wheat has been disrupted. Russia stands as a largest exporter of wheat, while Ukraine also has big share compared to its size and production.
Even though India is second-biggest wheat producer after China, its export share stands at eighth position. On the top is Russia followed by European Union, Australia, Canada, United States, Argentina, Ukraine and India.
A report in Financial Times said, futures trade in Chicago rose as much as 5.9 per cent to $12.47 a bushel, their highest level in two months. Wheat prices have risen more than 60 per cent this year, driven up by disruption from Russia’s invasion of Ukraine. The two European countries account for almost a third of the world’s wheat exports.
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