On Thursday, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the proposal to impose restrictions on wheat flour exports, in a bid to ensure food security for India’s vulnerable sections.
The move is also expected to bring about some rationalization on rising wheat prices in the country, following a pronounced heat wave and other macroeconomic factors
The Directorate General of Foreign Trade (DGFT), which is a part of the Ministry of Commerce and deals with trade matters, will be issuing a notification to this effect, the CCEA added.
India’s restrictions on wheat exports in May 2022 led to an increase in demand for wheat flour in the foreign market, especially post the Russia-Ukraine war. Both countries are leading wheat exporters and contribute a fourth to the wheat trade globally. This also made wheat prices go up in the domestic market.
“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," the Cabinet Committee said.
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