Wheat prices hit a new high on Monday after India opted to halt exports due to a heat wave that hampered output.
As the European market opened, the price increased to 435 euros ($453) per tonne. Since Russia’s February invasion of agricultural powerhouse Ukraine, which previously accounted for 12% of global exports, global wheat prices have risen due to supply concerns.
Wheat prices have skyrocketed on world commodities markets in recent months, raising the cost of everything from bakery items to noodles.
After the hottest March on record, India, the world’s second-largest wheat producer, announced a restriction on exports on Saturday. New Delhi expressed concern over the food security of its 1.4 billion people, citing reasons such as decreased supply and dramatically increased world prices.
India’s government stated that shipments supported by letters of credit previously given and to countries requesting supplies “to meet their food security needs”. Officials from the government also stated that the prohibition was temporary and may be revised.
