India considers restricting wheat exports as heat destroys crops – The Peninsula

India considers restricting wheat exports as heat destroys crops – The Peninsula

India is considering restricting wheat exports as severe heat waves have damaged crops, prompting the government to prioritize domestic consumption over supplying the grain to the world.

The country experienced its hottest March on record, shriveling India’s wheat crop during a crucial growth period. The government slashed its production estimate for the current season to 105 million tons from a record 111 million tons forecast earlier, the food ministry said on Wednesday.

To safeguard domestic supplies, the government is considering limiting wheat exports, according to a person with knowledge of the matter. Top officials are discussing the move and will recommend it to Prime Minister Narendra Modi, who will then make the decision, said the person, who asked not to be named as the information is private.

One of the strategies, the person said, could be setting a minimum export price so wheat cannot be shipped overseas below this level. This way, without outrightly banning it, the government can boost domestic supply and keep a check on prices, according to the person.

An agriculture ministry spokesperson wasn’t immediately available to comment. A finance ministry spokesperson didn’t answer calls, while the trade ministry didn’t immediately respond to an email seeking comment.

Curbing exports would be a