India bans wheat exports to deepen global food crisis

Wheat prices in India have risen to a record high, in some places as high as 25,000 rupees (£263) per tonne, way above the government’s fixed minimum support price of 20,150 rupees.

Earlier this week, India outlined its record export target for this fiscal year, adding it would send trade delegations to countries such as Morocco, Tunisia, Indonesia and Philippines to explore ways to further boost shipments.

But a sharp and sudden rise in temperatures in mid-March means the crop size could be smaller than expected at about 100 million tonnes or even lower, a New Delhi-based dealer with a global trading firm told Reuters. 

The government had estimated production would hit an all-time high of 111.32 million tonnes.

Cashing in on a rally in global wheat prices after Russia invaded Ukraine, India exported a record 7 million tonnes of wheat in the fiscal year to March, up more than 250 per cent from the previous year.

In April, India exported a record 1.4 million tonnes of wheat and deals were already signed to export around 1.5 million tonnes in May.

In 2020, Ukraine was the world’s fifth largest exporter of wheat, with low-income countries such as Bangladesh and Lebanon among the beneficiaries, but since the invasion Russian forces have blockaded grain exports from Ukraine’s ports.