India has banned wheat exports as grain prices soar this year due to the Russo-Ukrainian war.
T. Narayan | Bloomberg | Getty Images
India banned wheat exportsIt became the latest country to do so with grain prices soaring this year in part because of the Russo-Ukrainian war.
The war caused a sharp rise in wheat prices, with Russia and Ukraine being among the largest exporters of this commodity. Both countries account for 29% of global wheat exports, According to the World Bank.
Wheat prices rose about 6% on Monday after that Weekend announcement in India.
“With food prices already soaring due to supply chain disruptions related to COVID and low yields last year, the Russian invasion came at a bad time for global food markets,” said the Peterson Institute for International Economics (PIIE) in Washington, DC. Research Center based, in an April note.
Russia and Ukraine are among the top five global exporters of several important grains and oilseeds, such as barley, sunflower and sunflower oil, as well as corn, according to PIIE.
India is not alone. In addition to Russia and Ukraine, Egypt, Kazakhstan, Kosovo and Serbia have also banned wheat exports.
And not just wheat. Many countries have also implemented bans on other food exports as global inflation rises as a result of the Ukraine crisis.
Prices of a wide range of other food products have risen, which has contributed to rising inflation around the world. Some of these products include sunflower oil, palm oil, fertilizers, and grains.
Other than rising food prices, the supply of many food products is also uncertain.
Ukraine was unable to export grain, fertilizer, and vegetable oils, while the conflict also destroyed crop fields and prevented the normal growing season. The government also has Russia accused of theft Several hundred thousand metric tons of grain and resell. The Russian Foreign Ministry did not immediately respond to CNBC’s request for comment.
“As the war continues, there is an increasing potential for food shortages, especially grains and vegetable oils, to become severe, causing more countries to turn to trade restrictions,” PIIE analysts Joseph Glober, David Laborde and Abdullah Mamoun wrote.
Over the weekend, the Group of Seven industrialized nations issued a warning about the risks of a global hunger crisis unless Russia lifts the ban on Ukrainian grain currently stuck in Ukrainian ports, According to the Financial Times.
Here is a list of countries that banned food exports in the months after the start of the Russo-Ukrainian War, according to a live tracker developed by PIIE.
source: Peterson Institute for International Economics
India has said it is banning the export of wheat “to manage the country’s general food security,” according to local media reports.
Among other countries that have recently implemented a food export ban is Indonesia, which has restricted exports of palm oil, a key ingredient used in many food and non-food products.
Similar to India, Indonesia has cited the need to ensure food availability locally, after global food inflation soared to record levels in the aftermath of the war. Indonesia accounts for more than half of the world’s population Palm oil supply.
“Gamer. Wannabe beer evangelist. Pop culture practitioner. Travel lover. Social media advocate.”