India Restricts Wheat Flour Export To Curb Rising Prices In Domestic Market

by Swarajya Staff - Aug 26, 2022 08:54 AM +05:30 IST
India Restricts Wheat Flour Export To Curb Rising Prices In Domestic MarketRepresentative Image

Prime Minister Narendra Modi led Union Cabinet on Thursday (25 August) approved a policy to restrict export of wheat flour to curb the rising prices in the domestic market.

The Cabinet approved a proposal for amendment of policy of exemption for Wheat or Meslin Flour from export restrictions/ban.

Meslin Flour is a wheat and rye blend that is sown and harvested together. It is typically traded alongside wheat.

"This approval will allow to put a restriction on the export of Wheat Flour which will ensure a curb on rising prices of the Wheat Flour and ensure food security of the most vulnerable sections of the society," the Ministry of Commerce and Industry said in a statement.

The ministry also informed that the Directorate General of Foreign Trade (DGFT) will issue a notification to this effect.

The amendment to the export policy comes months after India banned export of wheat amid the increase in the price of wheat in domestic markets due to the effects of the Russia-Ukraine war.

According to 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 ban/restrictions on export for Wheat Flour in order to ensure food security and put a check on mounting prices of Wheat flour in the country.

Russia and Ukraine are the major exporters of wheat accounting for around one-fourth of the global wheat trade. The conflict between them led to the global wheat supply chain disruptions increasing demand of Indian wheat.

As a result, the price of wheat in domestic market showed an increase. In order to ensure food security of 1.4 billion people of the country, the decision was taken to put a prohibition on export of wheat in May 2022.

However, due to prohibition on export of wheat, the demand for wheat flour has increased in foreign markets and it’ s exports from India have registered a growth of 200 per cent during April-July 2022 compared to the corresponding period in 2021.

The increased demand for wheat flour in international market led to significant price rise of wheat flour in the domestic market.

Get Swarajya in your inbox everyday. Subscribe here.
Tags: 

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments ↓
Get Swarajya in your inbox everyday. Subscribe here.
Advertisement

Latest Articles

    Artboard 4Created with Sketch.