The price of wheat rose to a new record on Monday: In European trading on the Euronext exchange, a tonne of wheat cost 435 euros in the morning. The reason is the wheat export ban that India announced on Saturday.
India is the world’s second largest producer of wheat – it was 110 million tons in 2021 – and has large reserves. The government in New Delhi justified the export ban with the effects of the current heat wave on the harvest. Yield estimates for this year have already been revised downwards. This step has now been taken to ensure security of supply in the country.
However, Commerce Minister BVR Subrahmanyam stressed that exports would continue to be allowed with the express permission of the government: “We don’t want wheat to be sold unregulated and then potted or not used in the way we had hoped: namely, to meet the needs of vulnerable states and vulnerable people.”
Shortage due to Ukraine war
The war in Ukraine has led to a shortage of wheat on the world market and thus to sharply rising prices. According to the German Ministry of Agriculture, 20 million tons of grain are stored in Ukraine, which cannot be exported due to blocked supply routes. The coming harvest could yield another 40 million tons of grain, but the war is preventing sowing in many places.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
