Global Wheat Price Hits Record High After India Bans Export

London: Two days after India decided to ban wheat exports, price of the worldwide staple food commodity surged to a record high in European trading on Monday.

The price jumped to 435 euros ($453) per tonne, up from the previous high of 422 euros on Friday, AFP reported.

Wheat prices have been rising since Russia launched a military operation against Ukraine in February based on supply apprehension. Ukraine, an agricultural powerhouse, accounted for 12% of global wheat exports before being invaded by Russia.

India, on the other hand, is the world’s second-largest wheat producer. The government’s logic to ban exports was that it had to protect food security of its own people because of lower production and rising global prices.

According to Union Commerce Secretary BVR Subrahmanyam, wheat and flour prices have increased by 20 to 40 per cent in some parts of the country in recent weeks.

To protect farmers, the government has extended wheat procurement season till May 31.

India’s decision to ban wheat exports was criticized by Agriculture ministers of G7 industrialised nations.

According to the government notification, wheat can be exported only if the government approves special requests from other countries to meet their food security needs.