Muted impact of wheat export ban on India's domestic food inflation: Nomura

If India's wheat ban leads to higher price of substitutes like rice, then there could be upward pressure on other food prices

Indian government’s move to ban wheat exports to curb may prove to be counter-productive, according to a report by Nomura, which suggests that the export ban should exert upward pressure on global wheat prices, which were already rising for other reasons, such as higher energy costs initially, and the Russia-Ukraine war later, and have risen further in anticipation of this ban.

“The impact of the wheat export ban on India’s domestic food inflation is likely to be muted. This export ban is a pre-emptive step and may prevent local wheat prices from rising substantially; however, with domestic wheat production likely