Heatwave hit wheat 🌾🌾 production, as India place ban on wheat exports, raising the price of wheat to an all time high

avatar
(Edited)

The current global warming across the world has caused several negative effects on food production and the time it's wheat that has been affected by the current heatwave.

image.png

Source

India stands as one of the major suppliers of wheat in large quantum to the European continent as well as Africa and the Middle East. Prior to the heatwave experienced by the entire world, Russia's refusal to sell nitrogen that's used in producing fertilizers for the cultivation of crops, have hiked the price of grains in the international market. With India's ban on wheat exports, the price of wheat in the international market have surged to an all time high, which will affect every part of the world in no time.

Wheat prices surged to a new record high on Monday after India decided to ban exports of the commodity as a heatwave hit production.
The price jumped to 435 euros ($453) per tonne as the European market opened.
Global wheat prices have soared on supply fears since Russia's February invasion of agricultural powerhouse Ukraine, which previously accounted for 12 percent of global exports.Source

It should be noted that things have changed in recent times as analysts predictions as regards to the international wheat price have changed drastically as seen above. This is the prediction for 2022:

The average annual wheat price in the U.S. is forecast to drop by 2% y-o-y to $250 per tonne in 2022, falling on reduced domestic consumption coupled with stable supply worldwide.Source

Looking at the difference between the predicted wheat price ($250) and the current price ($453), it's crystal clear that the entire world is heading towards food shortage and severe hardships and hunger in the coming months.

The spike, exacerbated by fertiliser shortages and poor harvests, has fuelled inflation globally and raised fears of famine and social unrest in poorer countries.
India, the world's second-largest wheat producer, said on Saturday that it was banning exports after its hottest March on record.Source

This decision by India to ban wheat exports in collaboration with the Russia-Ukraine war will compound to food crisis in Europe and other low income countries. Shortage of food means hunger and starvation in the long run.

New Delhi said factors including lower production and sharply higher global prices meant it was worried about the food security of its own 1.4 billion people.Source

Protecting one's citizens in terms of providing food for the masses is a welcomed development, because exporting the available wheat to other parts of the world meals hunger and this can lead to crisis within the Indian territory.

What'll Europe do amidst this surging food crisis coming towards her direction?



0
0
0.000
0 comments