The ban from the world’s second-biggest wheat producer could push global wheat prices to new peaks.
India has banned wheat exports with immediate effect, just days after saying it was targeting record shipments this year, as a scorching heatwave curtails output and local prices hit an all-time high.
Amid strong export demand, the government said on Saturday it would still allow exports for letters of credit that have already been issued and on the request from countries that are trying “to meet their food security needs”.
The Indian 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 2-3 months, but seems inflation numbers changed government’s mind.”
Rising food and energy prices pushed India’s annual retail inflation up towards an eight-year high in April, strengthening economists’ view that the central bank would have to raise interest rates more aggressively to curb prices.
Wheat prices in India have risen to record high, in some spot markets to as high as $322.71 (25,000 rupees) per tonne, versus government fixed minimum support price of $260 (20,150 rupees).
‘The ban to lift global wheat prices’
Global buyers were banking on the world’s second-biggest wheat producer for supplies after exports from the Black Sea region plunged following Russia’s offensive in Ukraine in late February.
Earlier this week, India outlined its record export target of 10 million tonnes for the 2022/23 fiscal year that started on April 1.
The country also added it would send trade delegations to countries such as Morocco, Tunisia, Indonesia and Philippines to explore ways to further boost shipments.
But a sharp and sudden rise in temperatures in mid-March means the crop size could be smaller than expected at around 100 million tonnes or even lower, a New Delhi-based dealer with a global trading firm said.
The government estimate is for an all-time high of 111.32 million tonnes.
“The government’s procurement has fallen more than 50 percent. Spot markets are getting far lower supplies than last year. All these things are indicating lower crop,” the dealer said.
In April, India exported a record 1.4 million tonnes of wheat and deals were already signed to export around 1.5 million tonnes in May.
“Indian ban will lift global wheat prices. Right now there is no big supplier in the market,” the second dealer said.
G7 countries pledge to end fossil-fuel financing abroad
The pledge still allows for some “limited” exceptions of fossil-fuel financing so long as they are consistent with the 2015 Paris pact to curb global temperature increases.
Japan for the first time joined fellow members of the Group of Seven industrialised nations in pledging to end public financing for fossil fuel projects abroad by the end of the year to help combat global warming.
“We commit to end new direct public support for the international unabated fossil fuel energy sector by the end of 2022,” G7 energy and climate ministers said in a joint statement following talks in Berlin on Friday.
The term “unabated” refers to projects that do not employ techniques to offset some of the pollution caused by carbon dioxide emissions.
Ending subsidies for the international fossil fuel energy sector was already part of a series of commitments agreed to by around 20 countries at last year’s COP26 climate summit in Glasgow.
Six of the G7 club of rich nations were among the signatories at the time Britain, Canada, Germany, France, Italy and the United States – but Japan had resisted until now.
“It is good that Japan, the world’s largest financier of fossil fuels, has now joined the other G7 countries in making a shared commitment to end overseas fossil fuel financing,” said Alden Meyer, senior associate at climate policy think tank E3G.
Friday’s pledge still allows for some “limited” exceptions of fossil-fuel financing so long as they are consistent with the 2015 Paris pact to curb global temperature increases. But Meyer said countries wishing to do so would face “a very stiff bar to clear”.
At their G7 talks, ministers also committed to largely end the use of fossil fuels in their electricity sectors by 2035, despite heavy tensions in the power market over Russia’s invasion of Ukraine.
“We further commit to a goal of achieving predominantly decarbonised electricity sectors by 2035,” they said.
Clean energy transition
To achieve this, member states promised to ramp up “the necessary technologies and policies for the clean energy transition” and accelerate the phase-out of coal.
The pledge was welcomed by environmental campaigners, at a time when the war in Ukraine has sent energy prices soaring and Western countries are scrambling to wean themselves off Russian imports.
“In a very difficult geopolitical situation, the G7 are united behind an end to fossil fuels by 2035 in the power sector. This is significant progress,” said David Ryfisch of the Germanwatch environmental group.
Speaking at the closing press conference, German Energy Minister Robert Habeck welcomed the pledges made by G7 nations, saying they sent a “strong signal for more climate protection”.
As well as a pledge to stop bankrolling fossil fuel projects abroad by the end of the year, Habeck highlighted the club’s agreement to ditch all “inefficient fossil fuel subsidies” by 2025.
FSM adds two barges to its fuel carrier fleet
Fuel Supplies Maldives (FSM) has added two new barges to its fuel carrier fleet.
FSM had contracted an Egyptian company in 2019 to build four new barges to add to its fuel carrier fleet. Two of these barges were brought to the Maldives at the end of last month.
Speaking to PSM News, Managing Director of FSM Mohamed Qasam said the new barges have joined the fuel supply operations of FSM. Qasam revealed the new barges are able to carry 260,000 litres of fuel at a time. He said the new barges have greatly increased the capacity of the company’s fuel supply operations in the country. He added two more barges are expected to arrive in the Maldives within the next two months.
The two new barges added to FSM’s fleet have been named MV Hunike and MV Bureki. The two barges join a fleet of 18 barges used to supply fuel to the atolls.
In addition, FSM also operates a fuel tanker, capable of carrying 8.5 million litres of fuel.
New blockchain Luna 2.0 set to launch after collapse erases billions
Many cryptocurrency exchanges such as gate.io, Bitfinex, FTX, Huobi, and Bitrue will support the new blockchain, says the creator of the network.
A new blockchain called Luna 2.0 is set to launch on Friday to replace the current Terra Luna crypto network after the latter’s collapse erased billions of dollars to hurt millions of investors.
Terra Daily, which provides daily news about the network, announced on Wednesday on its official Twitter account that a proposal “to rename the existing network Terra Classic (LUNC), and rebirth a new Terra blockchain (LUNA) has officially passed!”
Do Kwon, the creator of the network and CEO of TerraForm Labs, also said on Twitter that many cryptocurrency exchanges will support the new blockchain Luna 2.0, such as gate.io, Bitfinex, FTX, Huobi, and Bitrue.
The price of cryptocurrency Terra Luna plummeted in recent weeks, trading at $0.0001578 around 0820 GMT on Thursday, from $92.31 a month ago.
Its sibling UST, which was initially designed to be pegged one-to-one with the US dollar, was at $0.09079 at the time.
Terra Luna’s price collapse is estimated to have caused crypto investors to lose around $40 billion, also sending a shockwave across the global crypto market that saw more than $1 trillion evaporating in just six weeks.
China’s space observation ship departs for 100th mission
UN Security Council fails to adopt resolution on DPRK sanctions
Chinese experts caution against over-disinfection for COVID-19
Biden to mark second anniversary of the murder of George Floyd
Indian police arrest Kashmiris protesting against Malik’s sentencing
President presents warrants of appointment to new Scout Council members
G7 countries pledge to end fossil-fuel financing abroad
Elections Commission grants approval to form Maldives Solidarity Party.
Parliament’s 06th May Terror Attack Report Highlights Defence Minister Mariya Ali Didi’s Negligence.
President Abdulla Yameen officially calls for the removal of Indian military personnel in the Maldives.
Leaked documents show India refused to withdraw military personnel and helicopters from the Maldives even after their Visa’s expired.
Opposition invites all ruling coalition partners to join campaign to secure independence of the Maldives.
Former President Mohamed Nasheed revokes support for the current administration in an open letter.
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