Modi Govt Restricts Export Of Wheat Flour

The central government on Thursday decided to impose restrictions on exports of wheat flour to curb the rising price of commodity. 

The Cabinet Committee on Economic Affairs (CCEA) in a statement said that the decision will now allow restrictions on the export of wheat flour which will ensure food security for the most vulnerable sections of society.

The CCEA chaired by Prime Minister Narendra Modi has approved the proposal for amendment of the policy of exemption for Wheat or Meslin Flour (HS Code 1101) from export restrictions and ban.

"Directorate General of Foreign Trade (DGFT) shall issue a notification to this effect," the statement added. 

Due to the conflict between Russia and Ukraine, the price of wheat in the domestic market showed an increase.  

"In order to ensure food security for 1.4 billion people of the country, the decision was taken to put a prohibition on export of wheat in May 2022," it said. 

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

"The increased demand for wheat flour in the international market led to a significant price rise of wheat flour in the domestic market," the statement added. 

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 and restrictions on the export of wheat flour in order to ensure food security, it mentioned.