Nations Continue to buy Domestic Wheat to Combat Inflation, High Food Prices

Nations continue to acquire domestic wheat from their farmers in an effort to boost reserves as food prices wreak havoc across the world.

India has bought 7 percent more wheat than usual from its domestic farmers, in an effort to combat inflation, which has reached a three-year high in the country. A number of state firms bought a combined 3.1 million metric tons of wheat from farmers since April 1. Eventually the figure may reach as high as 15 million tons, according to Food Corp. Chairman Alok Sinha.

Inflation for India has climbed to 7.14 percent over the same week a year ago.

Kazakhstan also announced today that they have instituted a four-month ban on wheat exports, also in an attempt to curb inflation and social unrest. While that would help Kazakhstan, it could hurt other nations in the region which have traditionally relied on Kazakh wheat.