Workers unload sacks of wheat from a truck at the Punjab Grain Purchasing Company’s facility in the Ludhiana district of Punjab, India, on Sunday, May 1, 2022.
T. Narayan | Bloomberg | beautiful pictures
India has banned wheat exportsbecame the latest country to do so as grain prices surged this year in part due to the Russo-Ukrainian war.
The war caused wheat prices to skyrocket, with Russia and Ukraine among the biggest exporters of the commodity. Both countries account for 29% of global wheat exports, according to the World Bank.
Wheat prices rose about 6% on Monday after India Weekend Announcement.
“With food prices already high due to COVID-related supply chain disruptions and reduced yields due to last year’s drought, the Russian invasion comes at a bad time for global food markets.” Peterson Institute for International Economics (PIIE), Washington DC. based on think tank, in an April note.
According to PIIE, Russia and Ukraine are among the top five global exporters of many important grains and oilseeds, such as barley, sunflower and sunflower oil, as well as maize, according to PIIE .
India is not alone. In addition to Russia and Ukraine, Egypt, Kazakhstan, Kosovo and Serbia have also banned wheat exports.
Inflation and food security concerns
And it’s not just wheat. Many countries have also implemented other food export bans due to high global inflation as a result of the Ukraine crisis.
Prices for many other foods have skyrocketed, contributing to rising inflation around the world. Some of these products include sunflower oil, palm oil, fertilizers, and grains.
In addition to rising food prices, the supply of many food items is also precarious.
As the war continues, there is a growing possibility that food shortages, especially cereals and vegetable oils, will become severe…
Peterson Institute of International Economics
Ukraine has been unable to export grains, fertilizers and vegetable oils, while the conflict is also destroying crop fields and preventing a normal planting season. The government has also accused Russia of stealing several hundred thousand tons of grain and resell them. The Russian Foreign Ministry did not immediately respond to CNBC’s request for comment.
PIIE analysts Joseph Glauber, David Laborde and Abdullah Mamun write: “As the war continues, there is a growing possibility that food shortages, especially cereals and vegetable oils, will worsen. important, causing many countries to turn to trade restrictions”.
Over the weekend, the Group of 7 industrialized nations warned of the risk of a world hunger crisis unless Russia lifts its blockade on Ukrainian grain currently stuck in its ports. Ukraine, according to the Financial Times.
Countries that ban food exports
Below is a list of countries that banned food exports in the months after the Russo-Ukrainian war began, according to a live tracking device developed by PIIE.
List of countries with food export bans
| Nation | Type of food product | Forbidden end date |
|---|---|---|
| Argentina | Soybean oil, soybean meal, | December 31, 2023 |
| Algeria | Pasta, wheat derivatives, vegetable oils, sugar | December 31, 2022 |
| Egypt | Vegetable oil, corn | June 12, 2022 |
| Wheat, flour, oil, lentils, pasta, beans | June 10, 2022 | |
| India | Wheat | December 31, 2022 |
| Indonesia | Palm oil, palm kernel oil | December 31, 2022 |
| Iran | Potato, eggplant, tomato, onion | December 31, 2022 |
| Kazakhstan | Wheat, flour | June 15, 2022 |
| Kosovo | Wheat, corn, flour, vegetable oil, salt, sugar, | December 31, 2022 |
| Turkey | Beef, lamb, goat meat, butter, cooking oil | December 31, 2022 |
| Ukraine | Wheat, oats, millet, sugar | December 31, 2022 |
| Russia | Sugar, sunflower seeds | August 31, 2022 |
| Wheat, meslin, rye, barley, corn | June 30, 2022 | |
| Serbia | Wheat, corn, flour, oil | December 31, 2022 |
| Tunisia | Vegetable | December 31, 2022 |
The source: Peterson Institute of International Economics
According to local media reports, India said it banned wheat exports “to manage the overall food security of the country”.
Other countries that have recently implemented food export bans include Indonesia, which restricts exports of palm oil, a key ingredient used in many foods as well as non-food products.
Similar to India, Indonesia sees the need to ensure food availability in the country, after global food inflation hit a post-war record high. Indonesia accounts for more than half of the world’s population palm oil supply.
