India prohibits wheat export after a decadal high in prices reported.

India prohibits wheat export after a decadal high in prices reported.

India has prohibited wheat exports with immediate effect, the government said in a notification, as the world’s second-biggest wheat producer tries to calm local prices. Shipments of wheat are allowed for letters of credit that have already been issued. Global buyers were banking on India for wheat supplies after exports from the Black Sea region plunged since Russia invaded Ukraine. The export policy of wheat is immediately prohibited,” the DGFT said. It also clarified that wheat exports would be allowed based on permission granted by the Government of India to other countries to meet their food security needs and based on the request of their governments. Following a nearly 40% rise in global rates in the aftermath of the Russia-Ukraine crisis, and also as India ramped up exports, wheat and cereal prices rose in India.

The country is expected to face a shortfall of cereal in the months ahead as production in the rabi season is likely to be below estimates.

The country is expected to face a shortfall of cereal in the months ahead as production in the rabi season is likely to be below estimates. Furthermore, industry stakeholders indicate that the product supply may suffer further in the months due to yield losses in Punjab and Haryana. The top producers of the grain in the country. Wholesale wheat inflation jumped to 14% in March, the highest in 63 months. The last time wholesale wheat inflation was higher was in December 2016. March saw the most elevated temperatures since 1901, shrivelling India’s wheat crop during a critical growing period. The scorching heatwave has burnt wheat fields in India, lowering yields and dampening export prospects. This has led to estimates that yields have fallen by 10% to 50% this season. Companies also indicated that they might hike the price of their product given the stress on margins. India exported a record 7 million tonnes of grain in fiscal 2021-22. India’s grain exports have surged since Russia invaded Ukraine in late February.

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