Home / News / India /  Centre restricts export of wheat flour

To curb rising prices of the commodity, the government has decided to put restrictions on the export of wheat flour. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Thursday approved changes in the policy of exports of wheat and removed the exemptions on Wheat or Meslin Flour from export restrictions or ban. The press release by the Ministry of Commerce and Industry also informed that the Director General of Foreign Trade (DGFT) will soon issue the notification to this effect.

“The approval will now allow putting a restriction on the export of Wheat Flour which will ensure a curb on rising prices of wheat flour and ensure food security of the most vulnerable sections of the society," the press release said while mentioning the impacts of the decision.

The amendment to the export policy come months after India banned wheat exports amid the increase in the price of wheat in domestic markets due to the effects of the Russia Ukraine war. The decision was taken in order to protect the food security of the 1.4 billion Indian population.

According to the press release of the Ministry, earlier, there was a policy not to prohibit or put any restrictions on the export of Wheat flour. Therefore, a partial modification of the policy was required by withdrawing the exemption from the ban/ restrictions on the export of Wheat Flour in order to ensure food security and put a check on the mounting prices of Wheat flour in the country.

Russia and Ukraine are the largest wheat exporters, accounting for roughly one-quarter of the global wheat trade. The conflict between them caused disruptions in the global wheat supply chain, increasing demand for Indian wheat.

Due to the prohibition on wheat export, demand for wheat flour has increased in foreign markets, with exports from India increasing by 200% between April and July 2022 compared to the same period in 2021.

This increased demand in the international market led to an increase in prices of the domestic markets. The government's decision was also driven by the expectation of less wheat production this year.

Meslin Flour is a wheat and rye blend that is sown and harvested together. It is typically traded alongside wheat. It was grown on our farms before World War II, but only a few ecological farmers sow it now.


 

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