Wheat benchmark index rises to 5.9% in Chicago, highest in two months, writes BBC
The export ban comes after a heat wave hit wheat crops in India, bringing domestic prices to a record high.
The cost of all the products that make up flour, from bread and cakes to noodles and pasta, has risen in recent months as wheat prices have risen in world commodity markets.
The Indian government has said it will continue to allow sustained exports of letters of credit that have already been issued to countries requesting supplies “to meet their food security needs”.
Government officials also said the ban was not permanent and could be revised.
However, the decision was criticized by the agriculture ministers of the Group of Seven Nations (G7) meeting in Germany.
“If everyone starts imposing export restrictions or closing markets, that would aggravate the crisis,” said German Food and Agriculture Minister Cem Ozdemir.
The G7 is an organization of the seven largest “advanced” economies in the world that dominates global trade and the international financial system. These are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
Although India is the world’s second largest producer of wheat, it has not previously been a major exporter, as most of its harvest is sold in domestic markets.
But Ukraine’s wheat exports fell after the Russian invasion. And given the droughts and floods threatening crops to other major producers, traders expected goods in India to offset some of the deficit.
Ahead of the ban, India aims to deliver a record 10 million tonnes of wheat this year.
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