India announced this Saturday the ban with immediate effect on wheat exports, to try to stop the escalation of prices that has occurred around the raw material due to a heat wave that reduced production.
The export ban will affect a market already stressed after Russia’s invasion of Ukraine, which caused it. India was taking advantage of this circumstance in its exports, which has also contributed to driving up prices within the country.
In the announcement, the General Directorate of Foreign Trade (DGFT) specifies that the decision is given “to manage the general food security of the country and support the needs of neighboring countries and other vulnerable countries.”
Wheat was trading around 760 dollars before the start of the conflict in Ukraine, and is currently moving towards 1,200 dollars.
The country’s year-on-year inflation has marked eight-year highs in the country, standing at 7.79%, in a trend similar to that developed by the West, where the increase in energy costs and problems with the supply chain they are driving up prices and forcing central banks to make, or at least consider, tightening monetary policy.
Paradoxically, the new measure by the Indian government comes just a few days after presenting record export forecasts for the fiscal year that began in April and announcing the sending of commercial delegations to other countries to further increase shipments of this material. premium to countries that used to buy wheat from Ukraine.
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