The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved the proposal to amend the policy of exemption for wheat or meslin flour. The move will now allow putting restrictions on the export of wheat flour, which will ensure a curb on rising prices of wheat flour in the country.
“The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, Shri Narendra Modi has approved the proposal for amendment of policy of exemption for Wheat or Meslin Flour (HS Code 1101) from export restrictions/ ban. The approval will now allow to put a restriction on the export of Wheat Flour which will ensure a curb on rising prices of wheat flour and ensure food security of the most vulnerable sections of the society,” according to an official statement.
It added that the Directorate General of Foreign Trade (DGFT), a commerce ministry arm that deals with export- and import-related matters, will issue a notification to this effect.
The move comes after the government imposed export curbs on wheat in May this year. The restrictions on wheat exports led to an increase in demand for the country’s wheat flour in the foreign market. The increased demand for wheat flour in the international market led to a significant price rise of wheat flour 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 statement said.
Russia and Ukraine are the major exporters of wheat accounting for about a fourth of the global wheat trade. The conflict between them led to the global wheat supply chain disruptions increasing the demand for Indian wheat. As a result, the price of wheat in the domestic market showed an increase. In order to ensure the food security of 1.4 billion people of the country, the decision was taken to put a prohibition on the 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,” it said.
On August 21, on wheat, the government said the country has sufficient stocks of wheat to meet its domestic requirements and the Food Corporation of India (FCI) has enough stock for public distribution. The Department of Food & Public Distribution said this in response to media reports that government authorities are making preparations to buy wheat from overseas.
“There is no such plan to import wheat into India. Country has sufficient stocks to meet our domestic requirements and @FCI_India has enough stock for (public) distribution,” the Department of Food & Public Distribution had said in a tweet reply while responding to a news report.
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