Indian export ban raises wheat prices

Wheat prices, the highest since the war in Ukraine, broke a new record in European markets early on Monday, at 435 euros, or about 455 francs, after India banned its grain exports.

‘We set the record for the start of wheat from the new harvest. In response to India’s announcement, this is the highest for all maturities in Euronext, ‘Agritel’s analyst Gautier Le Molgat told AFP.

India, the world’s second-largest wheat producer, announced on Saturday that it would ban exports of these products without special government approval, especially in the face of a sharp drop in production.

New Delhi, which had earlier promised to supply wheat to weaker countries that depend on exports from Ukraine, has said it wants to ensure “food security” for India’s 1.4 billion people. The G7 was warned on Saturday that the decision would “exacerbate” the global crisis of grain supply.

The previous record was set on May 13, with wheat prices initially set at 422 euros per tonne, in the wake of new US global forecasts that Ukrainian wheat production will be cut by a third in 2022-23.

Wheat has been selling for months at an unprecedented rate in world markets. Its price has increased by 40% in three months and the market is very tight due to the risk of drought in South America and Western Europe.


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