Why is the world worried about India's 'U-turn' on wheat exports?

 Why is the world worried about India's 'U-turn' on wheat exports?

Prices of this important commodity included in the daily diet have risen significantly in the international market after the ban on wheat exports by India.

Wheat prices rose 5.9 percent in the US state of Chicago's benchmark weight index.

Rising commodity prices internationally are pushing up everything from double bread to cakes and noodles.

The ban on wheat exports during the heat wave in India has led to a sharp rise in prices in the local market.

The Indian government has said the ban will not affect wheat export deals whose LCs have been issued and will also accept applications from countries that supply their food. There are difficulties in meeting the needs of.

Officials say the export ban on wheat is temporary and could be revised.

But the decision has been sharply criticized by the agriculture ministers of the Group of Seven (G7), the world's seven largest economies.

"If every country imposes restrictions on exports or closes its markets, the crisis will only get worse," said German Food and Agriculture Minister Cham Ozdemir.

The G7 is an international organization of the world's seven most developed economies, with global trade and the international financial system in their hands.

In addition to the United States, there countries include Canada, France, Germany, Italy, Japan and the United Kingdom.

Although India is the second largest producer of wheat in the world, it has not been the largest exporter of wheat in the past and a large portion of wheat production in India is used to meet local needs.

But Ukraine's wheat exports have almost disappeared after Russia's military operation.

Droughts, floods and natural disasters have affected the wheat crop in major wheat producing countries. Commodity traders were looking to India to meet the shortage of wheat in the world market.

Before the ban on wheat exports to India, India intended to export 10 million tonnes of wheat.

Global food prices rose to record levels in March and have risen sharply since the military crackdown on Ukraine, according to the United Nations.

The war in Ukraine has affected exports from the world's largest producer of edible oil, affecting other commodities as well.

Ukraine is also a major producer of wheat and corn, whose prices have risen sharply

The United Nations says global food prices eased slightly in April, but are still 30 percent higher than last year.

Rising food prices, coupled with rising energy prices, are driving up inflation around the world.

It has forced major central banks, including the US Federal Reserve and the Bank of England, to raise interest rates in an effort to curb rising prices.

As a result, concerns have been raised that higher borrowing costs could affect global economic growth, with some top observers warning of a recession.

On Sunday, Lloyd Blankfein, senior chairman of Goldman Sachs, a Wall Street investment banking company, said the United States, the world's largest economy, was "at high risk" of a recession.

The comments by Blank Fan on the American television channel CBS's "Face the Nation" came on the same day that Goldman Sachs economists cut their US economic growth forecasts for this year and next