India restricts wheat flour exports to curb rising domestic prices
Prime Minister Narendra Modi, head of the Union cabinet, on Thursday (August 25th) approved a policy to restrict wheat flour exports to curb rising prices in the domestic market.
Cabinet has approved a proposal to amend the policy to exempt wheat or meslin flour from export restrictions/bans.
Meslin flour is a mixture of wheat and rye that is sown and harvested together. It is usually marketed together with wheat.
“This approval will allow the imposition of a restriction on the export of wheat flour, which will ensure a check on the rise in wheat flour prices and ensure food security for the most vulnerable sections of society,” he said. said the Department of Trade and Industry in a statement. statement.
The Ministry also informed that the General Directorate of Foreign Trade (DGFT) will issue a notification to this effect.
The export policy change comes months after India banned the export of wheat amid rising wheat prices in domestic markets due to the effects of the Russian-Ukrainian war.
According to the ministry, previously there was a policy of not banning or imposing export restrictions on wheat flour. Therefore, a partial policy change was needed by removing the exemption from export ban/restrictions for wheat flour to ensure food security and curb rising wheat prices. wheat flour in the country.
Russia and Ukraine are the main wheat exporters, accounting for about a quarter of world wheat trade. The conflict between them has led to disruptions in the global wheat supply chain, increasing the demand for Indian wheat.
As a result, the price of wheat on the domestic market increased. In order to ensure food security for the country’s 1.4 billion people, the decision was taken to ban the export of wheat in May 2022.
However, due to the wheat export ban, the demand for wheat flour has increased in overseas markets and its exports from India have witnessed a 200% growth from April to July 2022 compared to the corresponding period in 2021.
The increased demand for wheat flour in the international market has led to a significant increase in wheat flour prices in the domestic market.