- Prices of wheat are pushing higher after India made the decision the ban exports of the grain
- The move came as a heat wave impacted crops, causing domestic prices to hit record highs
- The decision has been criticised by the G7, who warned of a worsening supply crisis if other countries acted similarly
- The ban is expected to impact developing countries in Asia and Africa the hardest
- The Indian government said it would continue to supply countries who need wheat for food security and exports already backed by letters of credit
Prices of wheat have been pushed higher after India made the decision the ban exports of the grain.
The move came as a heat wave impacted crops, causing domestic prices to hit record highs.
Wheat prices have already fallen pressure to the Russia Ukraine crisis, with many countries looking to India as an alternative source for the staple food.
The decision has been criticised by the G7, who warned of a worsening supply crisis if other countries acted similarly.
The ban is expected to impact developing countries in Asia and Africa the hardest.
However, the Indian government said it would continue to supply countries who need wheat for food security and exports already backed by letters of credit.
Egypt’s agreement to buy 500,000 tonnes of wheat from the country will be honoured, which give it enough supply to last until the end of the year.
Meanwhile, Iran has already been struggling with the rising wheat prices. The end of subsidies for imported wheats triggered protests, as bread prices soar higher. The government is planning to distribute digital coupons over the coming months to provide a limited amount of bread at cheaper prices.
Wheat prices were trading 5.12 per cent higher today at US$12.38 per bushel.