London/Washington, Reuters. The ban on export of wheat by India on Monday has led to a huge jump in the international wheat prices. India is the latest country to use trade restrictions to combat food inflation. The war in Ukraine threatens to further reduce the ravaged world wheat supply.
Wheat futures markets in the US and Europe rose nearly 6%. The global benchmark Chicago market has already reached its daily trading limit and Paris prices hit an all-time high. Chicago futures were up 4.9% from a two-month peak at the end of their overnight trading session. Wheat contributed to a record high this year for global food prices as measured by the UN’s food agency. Russia’s invasion of Ukraine has increased the wheat market by preventing mass shipments from Ukraine’s sea ports. Ukraine accounts for 12% of global exports. It is also called the powerhouse of agriculture.
In Europe, the price of wheat rose to 435 euros per tonne. Since Russia’s attack on Ukraine on February 24, global wheat prices have risen on fears of a supply crunch.
Sensing the mood of the global market, India pulled out of wheat exports
Most countries have imposed restrictions on wheat exports in their own way. The committee’s ears were raised in view of the increase in the price of flour by 35 to 40 percent in the last few days. In view of the expected decrease in wheat production and increase in exports, the prices of wheat and its products started rising in the commodity market. It was necessary to overcome this. The fear of Indian wheat stockists and speculators becoming active at the international level also increased.
Ban imposed on wheat export to control inflation
The Central Government said that this step has been taken while taking precautions to control inflation in the domestic market. Apart from this, the export of wheat was banned after the highest ever temperature in March.
Due to low production and rapidly rising global prices, it is concerned about the food security of its 140 million population. Food Secretary Sudhanshu Pandey, while claiming adequate availability of food grains in the country, had told that there is a stock of 65 million tonnes of food grains in the government stock as of today. To maintain the availability of wheat, the ratio of wheat and rice in the ration system has been balanced with minor changes. Whereas Agriculture Secretary Manoj Ahuja gave the details of the decline in wheat production. He said that in the advance estimate in February, the total production of wheat was estimated to be 111.2 million tonnes. However, it has come down to 105 million tonnes in the second estimate.
Criticism of the decision to ban the export of wheat
On the other hand, Bharatiya Kisan Union (Rajewal) President Balbir Singh Rajewal has criticized the decision of the Central Government to ban the export of wheat. He said that at present the demand for wheat has increased all over the world and we have surplus food grains.
Credit: www.jagran.com /