LONDON (Bywire News) - The global pressure on wheat supplies cranked up a notch on Saturday as India announced a ban on wheat exports. The decision comes after a heatwave curtailed output and domestic prices soared. It was a blow to global wheat buyers who were banking on the world’s second biggest producer, after China, stepping in to fill the gap left by Russia’s invasion of Ukraine. Furthermore, it comes on the back of problems in other major producers such as the US, Europe, Canada and Australia.
India’s ban is the latest in a series of export bans around the world which have shaken global supply chains. Here are some of the others.
Ukraine: February/March 2022. Grain
Shortly after the start of the war against Russia, Ukraine closed its ports and later banned the export of rye, barley, buckwheat, millet, sugar, salt and meat. It also introduced export licenses for wheat, sunflower oil and corn. Half of the Ukrainian exports sent global food prices to record highs.
Indonesia: April 2022, Palm Oil
In April, the world’s top producer of palm oil imposed a ban to secure its domestic supply and dampen soaring prices. As a result, global vegetable oil prices rose sharply.
Other bans
Other countries have also been moving to control grain exports. Argentina is attempting to control domestic wheat prices, Hungary has banned all grain exports and Serbia has restricted the quantities of wheat, corn, flour and cooking oil slated for export.
Bulgaria, meanwhile, says it will increase grain reserves and may restrict exports.
Argentina: December 2021, Corn and Wheat
In December last year, Argentina attempted to avoid domestic grain shortages and dampen rising food prices by capping the amount of corn which could be exported.
Russia 2021: Grains
In the face of rising food inflation, Russia placed taxes on grain exports in June 2021. The size of the duty is determined each week by the agriculture ministry.
(Writing by Tom Cropper, editing by Klaudia Fior)