The Relaxation in India's Export Restrictions will Lower the Global Price of Wheat

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The Relaxation in India's Export Restrictions will Lower the Global Price of Wheat
13 Jun 2022
6 min read

News Synopsis

India's decision to ease export restrictions will reduce the prices of wheat at the global level. The international price of wheat has increased so much after 2008. This is because of the lack of production in some major exporting countries. Apart from this, there is also increasing pressure due to supply concerns in 2022-23.

The International Monetary Fund (IMF) has expressed concern over the ban on food and fuel exports but has also thanked the Government of India for easing the wheat export ban. IMF also said that India's decision will reduce the global prices of wheat. According to the IMF, about 30 countries have imposed restrictions on the export of essential commodities, including food and fuel, since the Ukraine war broke out.

This risks rising global inflation and volatile inflation and destabilization of markets. The IMF has welcomed the Indian government's decision on easing the announced restrictions on wheat exports and allowing some shipments. India may have banned wheat exports to keep prices under control, but the Food and Agriculture Organization of the United Nations expressed the hope of exporting 7 million tonnes of wheat from India despite the restrictions.