G-7 COUNTRIES

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Context

In the wake of the Russian-Ukraine war, the demand for Indian wheat increased overseas. Whereas, wheat production in India is expected to be lower this Rabi season.
India, due to lower production and higher demand from private buyers, the world’s second-largest producer of wheat banned wheat exports.
The issue of India’s wheat export ban is likely to dominate the upcoming G-7 summit and global food security meeting at United Nations (UN).

Why did India ban wheat exports?

The reasons given were runaway inflation and food security of 1.4 billion people.
- Some parts of India, have seen prices of wheat and flour jump 20 to 40 per cent in recent weeks.
Because of the sharp rise in global prices, some farmers were selling to traders and not to the government.
- This got the government worried about its buffer stock of almost 20 million tonnes -- depleted by the pandemic -- needed for handouts to millions of poor families and to avert any possible famine.
Low production due to heatwaves. India recorded its warmest March on record -- blamed on climate change -- and in recent weeks has seen a scorching heatwave with temperatures upwards of 45 degrees Celsius (113 Fahrenheit).
- This hit farmers in wheat-producing northern India, prompting the government to predict output would fall at least five per cent this year from 109 million tonnes in 2021.

India as a wheat exporter

India is a marginal player globally and produces mostly for domestic consumption, and almost half its exports last year went to Bangladesh.
India’s exports have been limited over quality concerns and World Trade Organisation (WTO) rules about grain purchased by the state.

About G7

It is an intergovernmental organization consisting of Britain, the US, Canada, France, Germany, Italy and Japan.
The heads of government of the member states, as well as the representatives of the European Union, meet at the annual G7 Summit.
G7 represents 58% of the global net wealth ($317 trillion), more than 46% of the global gross domestic product (GDP) based on nominal values, and more than 32% of the global GDP based on purchasing power parity.
The seven countries involved are also the largest IMF-advanced economies in the world.