World ’s food problems pile up as India limits wheat exports

India's move to restrict wheat exports is set to reverberate through global agricultural markets, exposing just how tight global supplies are after the war in Ukraine and threatening to drive up food prices even more.

The government said in a notification dated May 13 it will suspend overseas sales to manage its food security. This drew criticism from the agriculture ministers of the Group of Seven nations, who said that such measures make the world's crisis worse.

The surprising thing is that India isn't even a prominent exporter on the world stage. The fact that it could have such a major impact underscores the bleak prospect for global wheat supplies. War has crippled Ukraine's exports, and now droughts, floods and heat waves threaten crops in most major producers.

"If this ban occurred in a normal year the impact would be minimal, but the loss of Ukraine volumes exacerbate the issues," said Andrew Whitelaw, a grains analyst at

Melbourne-based Thomas Elder Markets.

India's decision to halt wheat exports came as a record-breaking heat wave parched the crop during a crucial period, spurring estimates of slumping yields. The output risk created a dilemma for India, which has tried to fill the gap as the shortfall in Ukraine's exports push buyers toward alternative origins.

Traders are frustrated by the policy. A day before the export halt was announced, the government said it was sending trade delegations to countries in Africa, Asia and the Middle East to explore the possibility of boosting wheat exports.

The ban could spark frenzied trading when agricultural markets reopen on Monday. Benchmark wheat prices in Chicago jumped 6.2 per cent last week.