'Shadow' cast by halting Indian wheat exports

<Anchor>

Another element of price instability has arisen.

Last weekend, India, the world's third-largest wheat producer, abruptly announced a halt to wheat exports.

Already, the prices of flour, bread, and ramen are rising due to the Ukraine crisis, which is causing a stir.

Reporter Jo Yoon-ha went out to a flour market.

<Reporter> The

flour counter at a large supermarket was empty.

During the weekend, customers flocked to buy everything.

India, the world's third-largest wheat producer, announced a halt to wheat exports, which seems to have affected consumer sentiment.

Consumers are worried that the prices of noodles, flour and ramen jumped 10-20% from a year ago due to the Ukraine crisis, but they are worried that it will rise again in the future.

[Kim Eun-ji / Gangseo-gu, Seoul: I eat a lot of bread in the morning, and I also eat a lot of ramen as a late-night snack, so it seems burdensome.

Find and buy discounted items.

I'm feeling a little burdened.] In

India, wheat production is declining due to a record heat wave, but exports increased due to an increase in international wheat prices.

The government said there would be no disruption to domestic wheat supply for the time being.

Korea hardly imports wheat from India, and domestic wheat stocks are also available until early August.

However, there are many expectations that the international wheat price itself will rise as a result of this export ban.

On the Chicago Mercantile Exchange today (June 16), wheat futures prices once jumped close to 6%, their highest in two months.

India's production is only 4% of the world's exports, but hopes that India will fill the wheat supply shortage caused by the Ukraine crisis have disappeared.

Closing the market for self-protection leads to a chain of international crises.

Food security risks are growing, with reports that 23 countries have turned to food protectionism due to the Ukraine crisis.

(Video coverage: Hwang In-seok, Video editing: Yoon Tae-ho, CG: Uhm So-min)

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<Anchor>

Let's talk a little more with reporter Jo Yoon-ha.

[Reporter Yoon-ha Jo: As the government explained, there are still stocks left, so the prices of flour, bread and ramen are not likely to jump right away.

In addition, since Korea mainly imports wheat from the United States, Australia and Canada, the impact of India's export ban is not expected to be significant.

Actually, I made a few phone calls to related companies, and I said that I am still a bit relaxed because I have secured flour for immediate use.]

[Reporter Yoon-Ha Jo: I'm a little worried about that.

In fact, the situation in the United States, where Korea is the main importer of wheat and the second largest exporter in the world, is rather serious.

Of all 50 states, 30, or more than half, are experiencing extreme drought.

In addition, France, a major exporter of the European Union, is also expected to experience a sharp drop in production due to low rainfall.

As you know, Ukraine, the world's 7th largest exporter, is also expected to see a rise in wheat flour prices in the long run because the war has actually ruined this year's agriculture.]

[Reporter Yoon-Ha Jo: The government has a wheat stockpile, so it will not take any action right away.

However, if the price rises, 70% of this price increase will be borne by the government and 20% by the industry.

In fact, about 54.6 billion won is budgeted for this plan in this supplementary budget plan.]

(Video Edit: Yoon Tae-ho)

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