World crop trade eyes India as new govt may relax curbs

Agricultural markets are on watch for potential shakeups in India’s trade policies after a new government assumes office this month, which could have significant ramifications on global food prices, according to Bloomberg.

The fifth-biggest economy has kept key crops like sugar and some major rice varieties off the global markets for more than a year. Prime Minister Narendra Modi sought to ensure adequate domestic supplies and temper consumer costs ahead of national elections, walking back a pledge to “feed the world” in the wake of Russia’s invasion of Ukraine. It also refrained from cutting a tax on wheat imports to appease farmers, a large voting bloc.

Prices of some farm commodities have softened from their peaks, with state agencies also cracking down on hoarding and selling some grains from state reserves. That raises the chance of a shift in the restrictions after election results are announced on June 4.

A spokesperson representing both the food and commerce ministries didn’t immediately comment.

Any relaxation in overseas sales could ease Asian benchmark rice prices that are trading near a 15-year high and add to a downturn in sugar.