After India’s announcement of a ban on the export of the staple cereal due to the reduced production prospects in Ukraine following the Russian invasion, the price of wheat has upraised in the international markets. The Food and Agriculture Organisation price index averaged 157.4 points in May, down 0.6% from April.
The index, which tracks monthly changes in the international prices of a basket of commonly-traded food commodities, remained 22.8% higher than in May last year. The Cereal Price Index of FAO averaged 173.4 points in May, up 3.7 points from April and as much as 39.7 points above its last year’s value.
FAO said that wheat prices rose for a 4th consecutive month, up 5.6% in May, to average 56.2% above their value last year and only 11% below the record high reached in March 2008. The steep increase in wheat prices was in response to an export ban announced by India amidst concerns over crop conditions in several leading exporting countries and reduced production prospects in Ukraine due to the conflict.
The sugar price index of FAO averaged 120.3 points in May, down 1.3 points from April, marking the first decline after sharp increases registered in the last couple of months. India announced the last month that it was banning wheat exports in a bid to check high prices amid concerns of wheat output being hit by the scorching heat wave. Wheat exports were accepted as per the permission granted by the Indian government to other countries to meet their food security needs and based on the request of their governments.