Cabinet Committee on Economic Affairs approves proposal for amendment of policy of exemption for Wheat Flour from export ban.

August 26, 2022

Cabinet Committee on Economic Affairs has approved the proposal for amendment of policy of exemption for Wheat Flour from export 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.
Russia and Ukraine are the major exporters of wheat accounting for around 1/4th 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, decision was taken to put a prohibition on export of wheat in May this year.
However, due to prohibition on export of wheat, the demand for wheat flour has increased in foreign markets.
Its exports from India have registered a growth of 200 percent during April to July this year compared to the corresponding period last year. The increased demand for wheat flour in international market led to significant price rise of wheat flour in the domestic market.