Voice of America
14 May 2022, 23:36 GMT+10
India banned wheat exports without government approval Saturday after its hottest March on record hit production, in a blow to countries reeling from supply shortages and soaring prices since Russia's invasion of Ukraine.
The announcement drew sharp criticism from the Group of Seven industrialized nations' agriculture ministers meeting in Germany, who said that such measures 'would worsen the crisis' of rising commodity prices.
'If everyone starts to impose export restrictions or to close markets, that would worsen the crisis,' German Agriculture Minister Cem Ozdemir said at a press conference in Stuttgart.
Global wheat prices have soared on supply fears following Russia's February invasion of Ukraine, which previously accounted for 12% of global exports.
The spike in prices, exacerbated by fertilizer shortages and poor harvests, has fueled inflation globally and raised fears of famine and social unrest in poorer countries.
It has also led to concerns about growing protectionism following Indonesia's halting of palm oil exports and India putting the brakes on exports of wheat.
India, the world's second-largest wheat producer, said that factors including lower production and sharply higher global prices meant it worried about the food security of its own 1.4 billion people.
Export deals agreed to before the directive issued Friday could still be honored, but future shipments need government approval, it said.
But exports could also take place if New Delhi approved requests from other governments 'to meet their food security needs'.
'We don't want wheat to go in an unregulated manner where it may either get hoarded and is not used for the purpose which we are hoping it will be used for -- which is serving the food requirements of vulnerable nations and vulnerable people,' said BVR Subrahmanyam, India's commerce secretary.
On Thursday New Delhi said it was sending delegations to Morocco, Tunisia, Thailand, Vietnam, Turkey, Algeria and Lebanon 'for exploring possibilities of boosting wheat exports from India'.
It was unclear whether these visits would still take place.
Global help
Possessing major buffer stocks, India previously said it was ready to help fill some of the supply shortages caused by the Ukraine war.
'Our farmers have ensured that not just India but the whole world is taken care of,' Commerce and Industry Minister Piyush Goyal said in April.
India said that it planned to increase wheat exports this financial year, starting April 1, to 10 million tons from seven million tons the year before.
While this is a tiny proportion of worldwide production, the assurances provided some support to global prices and soothed fears of major shortages.
Egypt and Turkey recently approved wheat imports from India.
But India endured its hottest March on record - blamed on climate change - and has been wilting in a heatwave in recent weeks, with temperatures upwards of 45 degrees Celsius.
This has hit farmers hard, and this month the government said that wheat production was expected to fall at least five percent this year from 110 million tons in 2021 -- the first fall in six years.
Indian wheat exports in the past have been limited by concerns over quality and because the government buys large volumes at guaranteed minimum prices.
The country's exports have also been held back by World Trade Organization rules that limit shipments from government stocks if the grain was bought from farmers at fixed prices.
Urgent need
The Ukrainian agriculture minister has traveled to Stuttgart for discussions with G-7 colleagues on getting its produce out.
About '20 million tons' of wheat were sitting in Ukrainian silos and 'urgently' needed to be exported, Ozdemir said.
Before the invasion, Ukraine exported 4.5 million tons of agricultural produce per month through its ports - 12% of the planet's wheat, 15% of its corn and half of its sunflower oil.
But with the ports of Odesa, Chornomorsk and others cut off from the world by Russian warships, the supply can only travel on congested land routes that are much less efficient.
G-7 ministers urged countries not to take restrictive action that could pile further stress on the produce markets.
They 'spoke out against export stops and call as well for markets to be kept open', said Ozdemir, whose nation holds the rotating presidency of the group.
'We call on India to assume its responsibility as a G-20 member,' Ozdemir added.
The agriculture ministers would also 'recommend' the topic be addressed at the G-7 summit in Germany in June, which India's prime minister, Narendra Modi, has been invited to attend.
Get a daily dose of Vietnam Tribune news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Vietnam Tribune.
More InformationJanakpurdham [Nepal], March 14 (ANI): The 15-day Mithila Madhyamiki Parikrama, Nepal's longest religious pilgrimage has come to an...
New Delhi [India], March 14 (ANI): West Indies Masters fast bowler Tino Best reflected on his most cherished moments from the ongoing...
Dhaka [Bangladesh], March 14 (ANI): The rape of a child in Bangladesh has cast a shadow over the celebrations of the Hindu festival...
(250314) -- BANGKOK, March 14, 2025 (Xinhua) -- Zhang Jianping (R) of China breaks through past Sydonie Marie Erica Andriamihajanirina...
Amritsar (Punjab) [India], March 14 (ANI): The Border Security Force (BSF) on Friday handed over a Pakistani national to the Pakistan...
New Delhi [India], March 14 (ANI): Delhi Police said on Friday that they have busted an interstate illegal arms smuggling cartel in...
ALBANY, New York: New York fired over 2,000 prison guards this week for not returning to work after a weeks-long strike that disrupted...
BEIJING, China: China has announced new tariffs on Canadian agricultural and food products in retaliation for Canada's recent duties...
ENNIS, Texas: A man died, and three of his family members were injured when their RV flipped several times during a strong storm at...
One halcyon spring day in 1903, the 69-year-old anatomist and naturalist Dr. James Bell Pettigrew sat at the top of a sloping street...
WEST PALM BEACH, Florida: Air Force fighter jets have stopped a civilian plane that entered restricted airspace near Donald Trump's...
CHICAGO/WASHINGTON, D.C.: Farmers and food groups across the U.S. are laying off workers, stopping investments, and struggling to get...