India has banned wheat exports from today due to the sudden increase in world market prices for the grain, a situation that would jeopardize the country's food security, according to an Indian government statement.
"The wheat export policy is prohibited with immediate effect," except for shipments "for which an irrevocable letter of credit has already been issued" prior to this notification, the Directorate General of Foreign Trade said in a statement quoted by Lusa and released Friday evening.
This decision by the Indian government was motivated mainly by the conflict in Ukraine and the heat waves that have damaged grain production in the country.
The Indian Directorate General of Foreign Trade has specified that the Indian government can issue a special license to export wheat to countries that are at risk of food shortages and thus meet their needs.
The text noted that the measure was adopted "considering that the Government of India is committed to the food security requirements of India, neighboring countries and other vulnerable developing countries that are adversely affected by sudden changes in the world food market and are unable to access sufficient supplies of wheat."
This announcement came after the Indian Commerce Ministry on Thursday set a target for this fiscal year of 10 million tons of wheat for export.
In the last fiscal year 2021-2022, India surpassed its record wheat exports, reaching seven million tons of this grain, worth more than $2 billion, according to the Directorate General of Foreign Trade.
The ban on wheat exports contradicts claims made last April by Indian Prime Minister Narendra Modi, when he said that India could feed the rest of the world if the World Trade Organization (WTO) gave it permission to do so.
India is the second largest producer of wheat, harvesting about 107 million tons annually, which accounts for 13.5% of world production, according to data from the Indian Ministry of Commerce.
However, most of this crop is destined for domestic consumption.
Wheat prices have soared on the world market since the start of Russia's invasion of Ukraine on February 24, as the two countries involved in the conflict account for about 30% of world exports of this grain.
The rising cost of wheat, added to that of other foods and oil, pushed inflation in India to 7.79% in April, its highest level since May 2014.
In addition, India has been affected in recent weeks by several severe heat waves, reaching 47 degrees Celsius in some parts of the country, which has devastated its wheat fields and reduced crop yields.