February 14, 2007

India bans wheat exports to control inflation

India has banned exports of wheat to control local prices and augment supplies, a senior government official said Tuesday (Feb 13).

"Several traders are planning exports from the western province of Gujarat as the local harvest has begun to arrive in the market...we won't allow this to happen until the end of December," the official told Dow Jones Newswires.

The trade scenario in India is such that the country may need to import wheat, but exports from farmland near the ports is also very competitive globally.