India restricts flour exports due to global wheat shortage

India will impose restrictions on the export of flour in a new attempt to help the domestic market in the face of the global wheat crisis.

Wheat grain exports fell sharply in May to bolster the country’s reserves due to global shortages and rising prices caused by Russia’s invasion of Ukraine.

The General Directorate of Foreign Trade announced that flour exporters would need prior government approval to maintain quality and stabilize domestic prices.

“Global disruptions in the supply of wheat and wheat flour have created new players in the market and led to price fluctuations and quality-related issues,” the regulatory agency said in a statement.

India banned all wheat grain exports without government approval in May, prompting a record rise in world prices and criticism from other countries.

Russia and Ukraine account for nearly 25% of the world’s wheat supply, but the ongoing war disrupts the supply chain and causes worldwide shortages.

Wheat is the main cereal in India, the world’s second-largest producer of this grain after China.

India produced 109 million tonnes of wheat last year but exported only seven million tonnes.

A heat wave in March and April caused a nearly 5% drop in the wheat harvest, raising fears of shortages in the domestic market.

Source: Gaúcha ZH

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