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Rabat – Wheat prices broke new records on Monday morning as international markets opened to India’s decision to ban wheat exports amid concerns about food security.
The prices rose by almost 6% following India’s decision to curb wheat exports in an effort to control pricing in its domestic wheat market.
Developed countries are most likely to feel the heat from the decision, according to a report from the Financial Times.
The decision will put further strain on an already tense market. Wheat prices have jumped by as much as 60% in the course of this year as a consequence of the Ukraine war, the report points out.
Russia and Ukraine historically exported a combined third of the global wheat export.
After the Ukraine war and the ensuing sanctions on Russia shook the global wheat market, India stepped in to fill the vacuum thanks to this year’s record-high harvest. But as inflation in India reached an eight-year high, the government announced halting its decision, citing concerns over food security, the report explains.
India’s decision to ban wheat exports came weeks after the Indian government announced it will boost wheat exports to North African countries to close the potential supply gap threatening food security in the region.
The country previously announced that it had raised the target for wheat exports to a record figure, saying it would be exporting up to 10 million tons of wheat in 2022, up from 7 tons in 2021 and 2 tons in 2020.
Multiple international organizations, including the World Bank, have raised concerns over the implications of the Ukraine war on global food security, especially in the Middle East and North Africa (MENA) region.
A World Bank report issued last month sounded the alarm on the food security issue in the Middle East, arguing that vulnerable counties such as Yemen, Lebanon, and Syria run a higher risk of suffering under the strain of the disruptions to the global supply chain.
