Prime News, International (Hong Kong), May 17:- Wheat prices increased after India imposed a ban on exports, stoking pressure on food costs as tight global supplies roiled international markets.
Futures traded in Chicago rose as much as 5.9 per cent to $12.47 a bushel, their highest level in two months, Financial Times reported.
Wheat prices have risen more than 60 per cent this year, driven up by disruption from Russia’s invasion of Ukraine.
The two European countries account for almost a third of the world’s wheat exports.
India, the world’s second-biggest wheat producer after China, had filled a gap in markets left by decreased output from Ukraine thanks in part to a bumper harvest of 7 million tonnes last year, even as inclement weather reduced the crops of other big exporters.
But after denying it would halt exports, India reversed course over the weekend after domestic inflation surged to the highest level in eight years on the back of rising food prices, the Financial Times reported.
New Delhi said it was introducing the ban, with some exceptions, “in order to manage the overall food security of the country and to support the needs of the neighbouring and other vulnerable countries”. (MR, Inputs: Agencies).