India Prohibits Wheat Exports

India has imposed a ban on wheat exports, effective immediately, as announced by the Ministry of Commerce and Industry of India.

According to TASS, this decision has been made as part of measures to control rising domestic prices, taking into account the unexpected surge in global wheat prices due to multiple factors.

Exports will be allowed only for those shipments for which irrevocable letters of credit (a payment instrument whereby a bank or company assumes a written obligation to pay for goods or services) were issued before May 13, as well as based on the Indian government's permission to meet the food security needs of other countries upon their request.

In March, India announced its intention to take steps in the near future to become a leading wheat exporter globally. However, due to several reasons, including severe heat conditions in the areas where this grain is grown, the republic is now concerned about a potential wheat deficit in the domestic market.