The cabinet committee on economic affairs led by Prime Minister Narendra Modi on Thursday approved changes in a policy that will allow the government to restrict exports of wheat flour from India, amid rising cereal prices.
India, the world’s second-largest wheat grower, on May 13, had banned private wheat exports to manage its food security needs, keeping a window open for overseas shipments only on the specific request of a foreign government to “meet their food-security needs”.
The decision to ban wheat export following a drop in the output due to a scorching early summer. Production of wheat is estimated to have fallen nearly 2.5% to 106.8 million tonnes, according to the government’s fourth advance estimates released on August 17.
The ban on export of wheat had increased the demand for wheat flour in foreign markets, the statement read. Export of wheat flour from India registered a growth of 200% during April-July 2022 compared to the corresponding period in 2021, the release said.
“The approval (to the changes in export policy) 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,” a statement from the commerce ministry stated Thursday.
{{/usCountry}}“The approval (to the changes in export policy) 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,” a statement from the commerce ministry stated Thursday.
{{/usCountry}}A notification specifying the extent of restrictions on the export of wheat flour will be issued soon by the directorate general of foreign trade.
Wheat has become a scarce commodity in international markets due to the Black Sea conflict, which has nearly stalled exports from Russia and Ukraine. The two countries account for roughly one-quarter of the global wheat trade. India is one of the few large countries which is self-sufficient in wheat, thereby avoiding a food crisis. The government has rationalised subsidised wheat distribution through the public distribution system by replacing wheat with rice in some states.