|India: Global food security crisis, ban on wheat export activities|
The export ban is the result of a continuous heat wave and rising extreme temperatures in several parts of India. It has become a real threat to Indian agriculture, thwarting all harvest activity this year. This then forced the Indian government to impose a ban on exports, especially on wheat commodities which should be shipped as much as 10 million tons this year, this prohibition is intended to meet domestic needs. Shortly after the ban was released, the price of wheat has now soared to its highest level. Where the price of wheat in India has gone up 320 US dollars.
India's wheat role is important because Bangladesh is the world's largest exporter of wheat after Ukraine. According to a report from the Indian Ministry of Commerce throughout 2021, India has supplied as much as 54 percent or 11.5 million tons of its wheat reserves to global trade. Even thanks to these exports, the Indian government was able to pocket a profit of up to 299.4 million US dollars per year, reported by The Daily Star. Apart from contributing to the supply of wheat, India is also known to be one of the important exporters of grain commodities.
The United States Department of Agriculture noted, India has at least about 10 percent of the world's grain reserves. There are also several countries that receive large portions of India's grain and grain supplies, such as Malaysia, Qatar, Nepal, United Arab Emirates, Sri Lanka, Afghanistan, Indonesia, Oman, and Yemen, reported by the New York Times.
The emergence of a new policy made by India not only made the price of wheat and grains soar, it could even hoist a surge in other food items such as flour, bread, cereals, and other staple foods. This, of course, exacerbated global food conditions, especially now that Ukraine's grain and grain exports were no longer able to operate due to the invasion.
The increasing world demand for wheat without an increase in supply worsens the condition of wheat trade in the global market, some analysts predict that if India's wheat export ban is carried out for a long period of time, it could exacerbate the forecast for hunger that occurs around the world. "We expect export restrictions to last only two to three months," said a Mumbai-based dealer with a global trading firm.
Further export bans could also be a further blow to international organizations working to counter the widespread threat of famine. The head of the FAO World Food Programme, said that 47 million people in the world could become victims of hunger because of the crisis and the sharp increase in world food prices. Even though the prohibition on exposure has been passed, Prime Minister Narendra Modi said that countries with letters of credit can still receive India's wheat export supplies, so they can still meet the food needs of their citizens.