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India has banned all wheat exports following a widespread heatwave that affected the country’s supply of the crop.
A notice that was sent out in the government gazette by the directorate of foreign trade, on Friday, said the food security of India, its neighboring, and vulnerable countries was being threatened by the rise in global wheat prices. Global wheat prices have increased by more than 40% since the beginning of the year.
The Guardian reported that one of the Indian government’s key aims is to control the rising cost of domestic food prices.
Prior to the Russian President Vladimir Putin’s invasion of Ukraine, both countries accounted for a third of global wheat and barely exports. Since Russia’s February invasion, Ukraine’s ports have been blocked and civilian infrastructure and many grain silos have been destroyed.
Western nations have also issued thoroughgoing sanctions on Russia making trade with the country incredibly difficult.
While Russian and Ukrainian wheat exports were being tied up due to war, India’s own wheat harvest experienced stunted production rates due to a record-breaking heatwave.
Even though India is the world’s second largest producer of wheat, it’s population consumes the lion’s share of the crop it produces. Hoping to capitalize on the global disruption of supply chains and decreased wheat access due to the Russian invasion of Ukraine, the Indian government had set a goal of exporting 10 million tons of domestically produced grain in 2022-23.
Indian wheat producers were preparing to find new markets for their product in Europe, Africa, and Asia. However, this plan has been halted for the foreseeable future. Much of the wheat and barley that was expected to be exported in this lot would have been sent to developing countries such as Indonesia, the Philippines, and Thailand.
The recent heatwave, however, wasn’t the only issue facing India’s wheat supply. The country’s historically vast stocks of wheat and barley — which in years past have served the country well as a reliable buffer against famine — became strained during the COVID-19 pandemic as the Indian government began to dole out grain to roughly 800 million people.
The Indian government needs about 25 million tons of wheat and barley each year for its extensive food welfare program that usually feeds more than 80 million people annually.
Statista reported that in 2018/2019 the United States had the fifth largest production volume of wheat worldwide at 51.29 metric tons.
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Record price hikes could soon see another huge spike — this time on wheat-based grocery items in particular — as Russia’s invasion of Ukraine coincides with the crop season for one of the world's most essential food sources.
Fifteen percent of all global calories come from wheat and rice, and one-third of the world’s wheat comes from Russia and Ukraine. The crop season for wheat is right now, but very little farming currently is occurring as Russia’s invasion of Ukraine drags on for a second month.
On the radio program, Glenn Beck broke down the importance of this statistic — plus many more — and explained why these numbers could even point to a possible famine by the end of the year.
"When you're looking at food, understand that 15 percent of all global calories come from wheat and rice … and one-third of all of our wheat comes from Russia and Ukraine," Glenn explained. "The next stat you need to understand is ... the supply chain for food is 90 days. We have 90 days worth of food in the supply chain and ... if it stops, let's say for some reason stop all farming, we would have 90 days left of food worldwide. Okay? Now, 25 percent of all global production is food. We're about to lose 12 percent of that production. That means, we're losing half of our food supply," he added.
"Now, the bigger problems [are] fertilizer and energy. The energy price to run the tractors, to run the trucks, to run everything else. And the price of phosphorus, potassium, and nitrogen. Those are the three major things we use to make fertilizer ... this is causing so much stress on the farmers that farmers all around the world are not planting their fields. They are reducing the acreage, because without fertilizer, you're not growing much. So why plant all those fields?" Glenn continued.
"So far, the price of corn has doubled. Soybeans [and] wheat are skyrocketing. The strategic food reserves, in some parts of the world, are now opening," he warned. "We'd better have perfect weather all over the world, because if things continue the way they are and don't turn around quickly, hundreds of millions of people will experience famine by the end of the year."
Glenn went on to detail what you can do now to prepare. Watch the video below to hear Glenn break it down. Can't watch? Download the podcast here.
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At Least There’s Not a Famine … | 7/27/22