The central government has decided to restrict the export of wheat flour to check rising commodity prices and ensure food security of the most vulnerable sections of the society. The decision was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi here on Thursday.
The Government will accordingly amend the policy of export restriction or exemption for the commodity from the restriction.
The Directorate General of Foreign Trade (DGFT) will issue a notification to this effect, a government release said. The decision has been taken against the backdrop of the Russo-Ukraine War. The Center said that the two countries are major exporters of wheat accounting for about 1/4 of the global wheat trade and the conflict between them has disrupted the global wheat supply chain leading to increased demand for Indian wheat. “As a result, the domestic market witnessed an increase in the price of wheat. It was decided in May 2022 to ban the export of wheat to ensure the food security of 1.4 billion people of the country.
However, the Center said, the demand for wheat flour has increased in foreign markets due to the ban on export of wheat and its export has registered a growth of 200 per cent during April-July 2022 as compared to the same period of 2021. The increasing demand for wheat flour in the international market has led to a significant increase in the prices of wheat flour in the domestic market.
“Earlier, there was a policy of banning or not imposing any restriction on the export of wheat flour. Therefore, there was a need for partial revision of the policy by withdrawing exemption from ban/ban on export of wheat flour to ensure food security and to check rising prices of wheat flour in the country.