India bans wheat exports as heatwave hurts crop

MUMBAI, May 14, ( Reuters) - India banned wheat exports on Saturday, just days after saying it was targeting record shipments this year, as a scorching heatwave curtailed output and domestic prices soared to an all-time high.

The government said it would still allow exports backed by already issued letters of credit and to those countries that request supplies “to meet their food security needs”.

Global buyers were banking on supplies from the world's second-biggest wheat producer after exports from the Black Sea region plunged following Russia's invasion of Ukraine in late February. Prior to the ban, India had aimed to ship a record 10 million tonnes this year.

The ban could drive up global prices to new peaks and hit poor consumers in Asia and Africa.

“The ban is shocking,” a Mumbai-based dealer with a global trading firm said. “We were expecting curbs on exports after two to three months, but it seems like the inflation numbers changed the government's mind.” Rising food and energy prices pushed India's annual retail inflation up towards an eight-year high in April.