India has decided to ban wheat exports amid a sharp rise in its domestic prices. Globally, grain prices have skyrocketed due to armed conflict Russia and Ukraine, Countries that account for almost 30% of global trade.

“We do not want wheat to be traded in an unregulated way or become a treasure. New Delhi Commerce Secretary BVR Subrahmanyam told reporters, according to Reuters.

India is the second largest producer of grain in the world as a country (after China), but it is not among the major exporters. Most of its crop is intended for local consumption. This year, the government forecast production of 111.32 million tonnes, which was the sixth record harvest in a row, but was estimated to have fallen to 105 million tonnes.

The distributor of the global trading firm was quoted by Reuters as saying that even after the high temperatures last March, the harvest would be around 100 million tonnes or less.

Despite the export blockade, The Government of India will allow exports with already issued credit notes and to countries requesting supplies “to meet food security needs”. Senior officials clarified that the event could even be reconsidered.

The decision could spur new growth in wheat prices at a time when, as not being a major exporter, India is expected to place at least 10 million tonnes in the international market.

According to Reuters, officials noted that there was no dramatic decline in wheat production this year, but unregulated exports led to an increase in local prices.

Limitations

“After two or three months, we expected export restrictions, but it seems that inflation has changed the government’s mind. Expressed by the global operator.

In India, the price of wheat in some markets has risen to 25,000 rupees ($ 320) per tonne, exceeding the minimum price of a government subsidy of 20,150 rupees, the news agency reported.