Global wheat prices soar as India imposes export ban
Global wheat prices have risen further as India places a ban on the exports of cereal.
According to the World Trade Organisation, wheat prices have risen by more than 60% in 2022, predominantly due to the impact of the Ukraine conflict. The benchmark wheat index rose to its highest rate in two months, with a 5.9% rise in Chicago.
India is the second biggest wheat producer globally after China. The country’s export ban follows a heatwave that has affected the harvest of wheat crops, raising domestic prices.
Indian government officials have said that the ban is not permanent and could be revised at a later date. Officials have confirmed that the ban will not apply to “vulnerable countries”. A spokesperson said that government was introducing the ban “in order to manage the overall food security of the country” and “to support the needs of the neighbouring and other vulnerable countries.”
The impact of the most recent price rises has yet to be felt; however, in recent months, the cost of bread, cakes, pasta and noodles has risen as wheat prices have continued to climb globally.
The shortages of grain because of the Ukraine conflict have had a knock on effect on the price of grain in the UK. The pig industry is experiencing the ongoing impacts of the hikes in feed costs, up from 134p/kg in Q4 to 148p in Q1, with feed now accounting for 71% of total cost. For context, the figure for feed in Q1, 2020, more normal times, was 90p/kg.