from ZeroHedge:
India prohibited wheat exports effective immediately, saying the nation’s food security was under threat, partly due to heatwaves that damaged yields in the country and disruptions to global grain markets in the Black Sea breadbasket region.
The notice was published in the government gazette by the Directorate of Foreign Trade on Friday. It read, “there is a sudden spike in the global food prices of wheat arising out of many factors, as a result of which the food security of India, neighboring and other vulnerable countries is at risk.”
TRUTH LIVES on at https://sgtreport.tv/
India said it was still committed to exporting wheat to “neighboring and other vulnerable developing countries which are adversely affected by the sudden changes in the global market for wheat and are unable to access adequate wheat supplies.”
The move by the world’s second-largest wheat producer comes as food protectionism runs rampant worldwide as countries limit or restrict exports of food staples to rein in domestic prices.
Wheat futures are expected to jump Sunday evening and add to record-high food inflation, crushing emerging market economies the hardest. High food prices have already resulted in inflation riots in several countries, one being the ongoing social instability unfolding in Sir Lanka.
Before the export ban, India was expected to be one of the top-10 wheat exporters for the 2022-23 crop season. Removing all (or part of) India’s expected wheat exports creates a massive hole in the global supply and demand. Wheat prices will rise further, and quickly #OATT pic.twitter.com/XG7OKuyMxX
— Javier Blas (@JavierBlas) May 14, 2022
The ban comes as no surprise considering India has been mulling trade restrictions this month as heatwaves have damaged wheat yields.
