There was no dramatic fall in wheat output this year, but unregulated exports had led to a rise in local prices said government officials, speaking just hours after the country banned wheat exports on Friday. 

“We don’t want wheat trade to happen in an unregulated manner or hoarding to happen,” a senior government official told reporters in New Delhi on Saturday. 

The government said that it would still allow exports backed by already-issued letters of credit and to 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 February 24 invasion of Ukraine. Before the ban, India had aimed to ship a record 10 mt of wheat this year. 

India had banned wheat exports on May 13 as a part of measures to control rising domestic prices. However, export shipments for which irrevocable letters of credit (LoC) had been issued on or before the date of the notification would be allowed, the Directorate General of Foreign Trade (DGFT) said in a notification dated May 13. 

Export of onion seeds was earlier prohibited. Official data released this week showed that retail inflation had surged to an eight-year high in April due to high prices of fuel and food items. The ban on exports also comes amid disruption in global wheat supplies due to the ongoing war between Russia and Ukraine which are major exporters of the foodgrain.