G7 criticizes India's decision to ban wheat exports

G7 critica decisão da Índia de proibir exportações de trigo

G7 agriculture ministers criticized India's decision to ban wheat exports, arguing that such a decision "will only worsen the crisis" in grain supplies, already strained by the war in Ukraine.

The G7 agriculture ministers meeting in Stuttgart, Germany, on Saturday "recommended" taking this issue to the group's June meeting of heads of state and government, where India will be present as a guest.

"(...) If everyone starts imposing such export restrictions or even closing markets, it will only worsen the crisis and also hurt India and its farmers," German Agriculture Minister Cem Özdemir was quoted by Lusa as saying after a meeting with his counterparts in Stuttgart.

"We call on India to assume its responsibilities as a member of the G20," he added, in reaction to the New Delhi announcement.

"We are against export restrictions and ask them to keep the markets open," Özdemir said.

The G7 brings together the seven largest economies in the world and comprises Germany, Canada, the USA, France, Italy, Japan, and the UK, with the European Union (EU) also participating in the group's meetings.

India has banned wheat exports from this Saturday due to the sudden increase in world market prices for the grain, a situation that would endanger 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 released Friday night.

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.

India is the second largest producer of wheat, harvesting about 107 million tons annually, which represents 13.5% of world production, according to data from the Indian Ministry of Commerce. However, most of this crop is destined for domestic consumption.

The price of wheat has 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.

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