India has banned exports of wheat, with immediate effect, casting a cloud on the outlook for global food supply.
What Happened: Exports of all varieties of wheat, which were previously freely allowed, has been prohibited under a revised policy, India's Directorate General of Foreign Trader working under the Ministry of Commerce & Industry said in a notification dated May 13.
The government attributed the decision to the sudden spike in the global prices of wheat due to several factors
This has rendered the food security of India, neighboring and other vulnerable countries at risk. The country, however, hasn't been able to access adequate wheat supplies, the ministry said.
India, however, made an exception for shipments if an irrevocable letter of credit has been issued before the date of notification.
"Exports will also be allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their governments," the notification said.