Following the global hike in wheat prices, India imposed a ban on wheat exports to ensure the country’s food security. The prohibition policy will not affect shipments whose irrevocable letter of credit was issued on or before the date of the notification. 

According to India’s Ministry of Commerce “a sudden spike in the global prices of wheat arising out of many factors” was the direct reason for the prohibition policy.

However, it is clear given that Russia and Ukraine account for more than 30% of the global exports of wheat and, 20% of global exports of maize and 76% of sunflower, any disruption in the production and supply chains will result in a price hike. 

Wheat is the second most-produced grain in the world after corn; now the whole world might face a wheat supply shortage due to the #Ukrainian crisis and the sanctions imposed on #Russia.#Ukraine #RussiaUkraine pic.twitter.com/aNkRuR4cj7

— Al Mayadeen English (@MayadeenEnglish) March 2, 2022

Furthermore, the UN World Food Program spokesman highlights that the ongoing conflict between Russia and Ukraine will inevitably affect global hunger. The increase in food prices, specifically the wheat crisis, is linked to the Black Sea basin turmoil, which is one of the most important regions for the production of grain and agricultural products.

On May 4th, the Indian authorities expressed their concern regarding the early summer which resulted in a 5.7% decrease, totaling 105 million tons, in their wheat production forecast. Their revised forecast for 2021-2022 played a major role in the final decision to ban exports of wheat protecting their nation’s food security and prices.