The drought in world's largest wheat producer country Russia, caused havoc on its crops, due to which the Russian Prime Minister Vladimir Putin put a ban on exports on Thursday. The ban resulted in increasing the wheat prices in United States, which indeed is bad news for the consumers.
Another major wheat supplier country, Ukraine has also started reducing its wheat supplies, on account of dry-weather.
The farmers in the U. S. have started stock piling wheat to endure the tough situation. On Friday, there was a fall of 60 cents in the prices of wheat on the Chicago Board of Trade, preceding a rise on Thursday.
There is a fear among the masses of the onset of food crisis. Hoarding of food supplies can also be one of the consequences of the situation. Also, the speculators and food Companies can also aggravate the problem to consumers.
The consumers have been cautioned by analysts against the rise in wheat prices that would lead to increase in the prices of wheat-made products such as bread at grocery stores.
The ban on exports in Russia would begin from August 15.
"The Government would honor current contracts and might revisit the ban later this year", said Igor Shuvalov, Russia's first Deputy Prime Minister. He further added that their basic responsibility is to meet the domestic need of wheat first and if there is any surplus, they will definitely export the same.