India has banned wheat exports after grain prices soared this year, in part because of the Russia-Ukraine war.
T. Narayan | Bloomberg | Getty Images
India bans wheat exportsbecoming the latest country to do so, as food prices have soared this year, in part because of the Russia-Ukraine war.
The war sparked a surge in wheat prices, with Russia and Ukraine the top exporters of the commodity. These two countries account for 29% of global wheat exports, According to the World Bank.
Wheat prices surged about 6% on Monday Weekend announcements in India.
“Food prices are already high as last year’s COVID-related supply chain disruptions and drought led to lower production, and the Russian invasion comes at a bad time for global food markets,” said the Peterson Institute for International Economics (PIIE) in Washington, D.C. Based on a think tank Mission, in an April report.
According to PIIE, Russia and Ukraine are among the top five global exporters of many important grains and oilseeds such as barley, sunflower and sunflower oils, as well as corn.
India is not alone. In addition to Russia and Ukraine, Egypt, Kazakhstan, Kosovo and Serbia have also banned wheat exports.
It’s not just wheat. Many countries have also imposed other food export bans as the Ukrainian crisis has sent global inflation soaring.
The prices of various other food items have soared, causing global inflation to rise. Some of these products include sunflower oil, palm oil, fertilizers and grains.
In addition to rising food prices, the availability of many food items is also uncertain.
Ukraine has been unable to export grains, fertilizers and vegetable oils, while the conflict has destroyed farmland and hindered the normal planting season.the government also has accuses Russia of stealing hundreds of thousands of tons of food and resell them. Russia’s foreign ministry did not immediately respond to CNBC’s request for comment.
PIIE analysts Joseph Glauber, David Laborde and Abdullah Mamun wrote: “As the war continues, food shortages, especially Shortages of grains and vegetable oils will become increasingly severe, leading more countries to turn to trade restrictions.”
Over the weekend, the G7 warned of the risk of a world hunger crisis unless Russia lifts its blockade of Ukrainian grain currently stranded in Ukrainian ports, According to the Financial Times.
Below is a list of countries that banned food exports in the months following the start of the Russian-Ukrainian war, according to a real-time tracker developed by PIIE.
source: Peterson Institute for International Economics
India has said it will ban wheat exports “to manage the country’s overall food security,” according to local media.
Other countries that have recently imposed food export bans include Indonesia, which restricted the export of palm oil, a key ingredient used in many food and non-food products.
Similar to India, Indonesia said it needed to secure domestic food supplies after global food inflation surged to record highs in the postwar period.Indonesia accounts for more than half of the world palm oil supply.