The ban comes after a heat wave hit India, limiting production and sending domestic prices soaring to all-time highs.
Quoted from Reutersthe government said it would still allow exports supported by letter of credit to countries that demand supplies for their food needs.
In fact, the global wheat market demand now relies on India, after exports from the Black Sea region plummeted following Russia’s invasion of Ukraine.
Prior to this ban, India had targeted a record shipment of 10 million tonnes this year.
While not one of the world’s top wheat exporters, India’s ban could push global prices to new peaks.
“The ban is shocking,” said one dealer based in Mumbai with a global trading company.
“We were expecting export curbs after two to three months, but it looks like the inflation figures are changing the government’s mind.”
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Record high wheat prices in India
Rising food and energy prices pushed India’s annual retail inflation near an eight-year high in April.