As the scorching heatwave mitigated wheat production, domestic prices have swollen to an all-time high. Therefore, India, today decided that it will put a ban on the export of wheat.
Earlier, India was inching towards a record wheat harvest this year. But an unexpected jump in temperature in March struck the crop production gravely and plummeted the production.
However, the government stated that exports backed by letters of credit already issued would be allowed.
Global buyers were relying on the supplies from India. Before the ban, India had exported 10 million tonnes of wheat this year. The ban on wheat is likely going to affect global prices and can hit poor Asian and African countries hard.
A Mumbai-based dealer owning a global trading firm said, "The ban is shocking. We were expecting curbs on exports after two to three months, but it seems like the inflation numbers changed the government's mind."
