The government said it would still allow exports backed by already issued letters of credit and to countries that request supplies “to meet their food security needs”.
“We don’t want wheat trade to happen in an unregulated manner or hoarding to happen,” commerce secretary B.V.R Subrahmanyam told reporters in New Delhi. Wheat prices in India have risen to record highs, in some spot markets hitting 25,000 rupees per tonne, well above the government’s minimum support price of 20,150 rupees.
A spike in temperatures in mid-March means the crop could instead be around 100 million tonnes or even lower, said a New Delhi-based dealer with a global trading firm.
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