'World's 2nd Largest Wheat Producer' India Imposes Complete Ban on Wheat Exports

"Sharp Rise in Global Wheat Prices Puts Food Security at Risk"

A woman is harvesting wheat in the Jammu region of India. [Image source=AP Yonhap News]

[Asia Economy Reporter Lee Chun-hee] India, the world's second-largest wheat producer, has abruptly banned wheat exports and announced that exports will only be allowed for quantities approved by the central government.

According to local media on the 14th, the Directorate General of Foreign Trade (DGFT) of India announced on the night of the 13th (local time) a revision to the wheat export policy that immediately bans the previously freely allowed wheat exports. In announcing this, the DGFT cited "the sharp rise in international wheat prices due to many factors" and stated that "the food security of India, neighboring countries, and other vulnerable nations is at risk."

However, it also stated that wheat exports will be permitted only if an Irrevocable Letter of Credit (ILC) was issued before the revision announcement date of the 13th, or if the export was approved at the request of another country's government for food security reasons.

The Directorate General of Foreign Trade (DGFT) of India announced on the 13th (local time) a policy change that completely bans the export of wheat, which had been freely allowed. [Image source=DGFT homepage]

Recently, with Russia invading Ukraine, the two countries that account for 25% of the world's wheat exports have entered into war, leading to a reduction in wheat supply and a surge in wheat flour prices. With India announcing this export ban, wheat flour prices are expected to rise even further. This decision is also attributed to an early heatwave in India during March and April, which reduced wheat production.

This content was produced with the assistance of AI translation services.