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Free delivery above $49

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Will Pillsbury and Aashirvaad stop the export of Atta?

by admin 19 May 2022

India Bans Wheat Export with Immediate Effect!

India, the second largest producer of Wheat, has moved “Wheat” from “free” category to “prohibited” category of export. The decision has apparently been taken to ensure adequate food availability in the country (India). The government cited a risk to food security due to Russia-Ukraine war and  crop damage due to scorching heat.

Previously the Indian government had announced to fill the wheat shortage supply gap caused by the war in Ukraine. The government had aimed to export 10 million tonnes of wheat this year. Arrangements were made to export wheat and various countries including Egypt and Turkey had approved wheat imports from India. This had calmed fear of wheat shortages globally. But India has experienced the hottest March this year on record. The sudden and sharp rise in temperature has destroyed hundreds of acres of wheat crop in India. This damage has caused a shortage of wheat supply in the country along with increase in price. The government has announced wheat export ban blaming the hot weather and fear of food shortage in the country. The government is hoping that costs are likely to fall after the move.

On the other hand, Ukraine along with Russia contributes around 29% of the world wheat export. The war in the region has seriously affected the supply of Wheat worldwide. After Russia-Ukraine war, the global wheat buyers have been relying on India for wheat export. The unregulated export of wheat had caused wheat shortage in India and rise in local prices, according to reports.

Although India is not one of the top Wheat exporters, but this ban would led to new global peak prices as there is no big supplier of wheat in the market at the moment. Due to war in Ukraine, many countries are already facing shortage of wheat supply. In such situation if every country starts to impose export restrictions it would worsen the crisis.

This ban will not only effect global prices and supply of wheat, but will also affect millions of overseas Indians consuming Indian wheat in foreign countries. Regional variety of Indian wheat is famous for its quality and taste.

There is some hope though. According to Indian government, Exports will still be allowed to countries that require wheat for food security needs and based on the requests of their government.

There has been no confirmation from Aashirvaad & Pillsbury yet about not being able to export to Australia. We are still waiting to hear back. But the fact that Aashirvaad Atta has not been coming to Australia for more than 3 months says a lot about the shortage.

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