After wheat export rose 200 per cent in between April-July period compared to the same period last year, the Centre Thursday restricted its exports.
The move will check skyrocketing prices of wheat flour, maida and related products ahead of festive season starting next month.
The Union Cabinet amended the existing policy under which wheat flour is exempted from any kind of export ban.
“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 exports for wheat flour in order to ensure food security and put a check on mounting prices of wheat flour in the country,” the Commerce ministry said. After the conflict between
Russia and Ukraine are the major exporters of wheat accounting for a fourth of the global wheat trade. The conflict between them led to the global wheat supply chain disruptions increasing demand for 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 in the country, the decision was taken to put the prohibition on export of wheat in May 2022.
However, due to prohibition on export of wheat (which was done to put a check on increasing prices in domestic market and to ensure food security in the country), 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, an official statement said after the cabinet meeting.