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  16 May 2022, 16:52
Update : 16 May 2022, 17:12

Wheat prices hit record high after Indian export ban

PARIS, May 16, 2022 (BSS/AFP) - Wheat prices surged to a new record high on 
Monday after India decided to ban exports of the commodity as a heatwave hit 
production.

The price jumped to 435 euros ($453) per tonne as the European market opened.

Global wheat prices have soared on supply fears since Russia's February 
invasion of agricultural powerhouse Ukraine, which previously accounted for 
12 percent of global exports.

The spike, exacerbated by fertiliser shortages and poor harvests, has fuelled 
inflation globally and raised fears of famine and social unrest in poorer 
countries.

India, the world's second-largest wheat producer, said on Saturday that it 
was banning exports after its hottest March on record.

New Dehli said factors including lower production and sharply higher global 
prices meant it was worried about the food security of its own 1.4 billion 
people.

Export deals agreed before the directive issued on May 13 could still be 
honoured but future shipments needed government approval, it said.

However, exports could also take place if New Delhi approved requests from 
other governments "to meet their food security needs".

India, which possesses major buffer stocks, previously said it was ready to 
help fill some of the supply shortages caused by the Ukraine war.

The export ban drew sharp criticism from the Group of Seven industrialised 
nations, which said that such measures "would worsen the crisis" of rising 
commodity prices.
 

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