India bans wheat exports

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India bans wheat exports
16 May 2022
6 min read

News Synopsis

A few days back, the Indian Government decided to immediately ban the export of wheat. The major reason behind this is said to be a steep decline in the production of wheat production. This eventually has forced the government to stop supplying wheat in fair price shops. The Indian Government’s decision will eventually the global wheat supply since India is the world’s second-largest wheat producer. This will worsen conditions amid the Russian Ukraine conflict

The invasion of Ukraine affected wheat supplies since both Ukraine and Russia are major producers of wheat. The fighting and blockades in the Black Sea have further disrupted the movement of the grain. This, in turn, has made the flour mills purchase wheat in bulk quantity and stock it in their godowns to make a killing when the prices spike in the coming weeks.

Additionally, the food ministry has reduced its wheat production estimate from 111 million tonnes earlier to 105 million tonnes while those in the trade expect the crop to be even smaller. However, India still has about 10 percent of the world’s grain reserves, a large surplus resulting from heavily subsidizing the farmers.

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