Citing the current heatwave conditions faced by most of the regions in the country which has hit the production of Wheat, India recently decided to ban the exports of Wheat. As a result of this ban, the prices of Wheat in the European market touched a record high on Monday.
Crossing the highest record price of 422 euros per tonne, which was recorded on Friday, the Euronext market on Monday opened with a record high price of wheat at 435 euros ($453) per tonne.
The Russian invasion of Ukraine’s agricultural powerhouse, which used to contribute around 12 percent of global exports, has already contributed to the increase in the wheat prices at the global level. Also, the soaring prices due to fertilizer shortages and poor harvests have contributed to an increase in the level of global inflation and raised concerns of drought and social unrest in poor countries.
Why the central government took the move to ban wheat exports?
The central government on Saturday said that the country is banning the wheat exports after the country on record experienced one of the hottest March this season, which has hit the production of wheat in the country and hence, the traders will have to seek clear government approval to make new deals.
The central government said the move to ban wheat exports was necessary to protect the food security of its own 1.4 billion people in the view of low production and steeply soaring global prices.