India Says Countries Asked It to Provide 1.5 Million Tons of Wheat After Banning Exports

A source inside the Indian government said on Monday that several desperate foreign countries are pleading with India to supply over 1.5 million tons of wheat, to compensate for shortfalls from the Russian invasion of Ukraine and other factors.

These requests are problematic as India banned all wheat exports three weeks ago.

India’s Directorate-General of Foreign Trade said on May 13 that wheat exports would be halted, aside from special exemptions based on “food security” concerns. 

The surprise order stunned market analysts since India had expressed a desire to increase exports and held an enormous stockpile of wheat. Huge amounts of grain were left trapped in storage as foreign buyers turned away. The global price of wheat soared.

According to the Indian official who spoke with Reuters, persistent requests from certain foreign buyers may loosen the export ban. 

The source said Bangladesh, a top customer for affordable and easily delivered Indian wheat, was at the top of the list. Reuters noted that Bangladesh recently rejected bids from other suppliers because their prices were too high. 

Egypt and Jamaica were also mentioned as urgent customers by the official. Egypt wants to buy at least 500,000 tonnes of Indian wheat.

“More than half a dozen countries have approached India for more than 1.5 million tonnes of wheat and we will see how to go about these requests. India is keen to help vulnerable countries and anyone who needs wheat,” the official said.

If these export requests are approved, the Indian government would not describe them as a major shift in policy, since the May export ban stated that exemptions could be made based on “food security” concerns.

India’s wheat export restrictions remained in place despite considerable pressure from the Group of Seven (G7) nations, which worried other exporters might follow suit and worsen the global food security crisis. Defenders of India’s decision suggested it was necessary to keep rapacious private traders from buying up the wheat stockpile and driving up prices. Indian officials also felt they needed a large inventory to protect their own citizens against adverse weather events and other supply disruptions.

Middle Eastern buyers said last week India has already capped sugar exports and could move next to restrict exports of rice. Demand for Indian basmati rice is surging, with premiums offered for urgent shipments, suggesting importers believe an export ban could be coming soon.