Authorities Limit Wheat Flour Exports.
- Aug. 25, 2022
- FMCG HORECA BUSINESS
Wheat exports from Russia and Ukraine account for about one-fourth of the worldwide wheat trade. The conflict between the two nations has disrupted the global wheat supply chain, boosting the demand for Indian wheat. Thursday, the government agreed to prohibit the export of wheat flour to stem the commodity’s soaring price.
The decision was made during a Cabinet Committee on Economic Affairs (CCEA) meeting presided over by Prime Minister Narendra Modi.
According to an official statement, the Cabinet’s decision “will now permit a limit on the export of Wheat Flour, which would provide a check on growing wheat flour costs and food security for the most vulnerable sectors of society.”
In this regard, the Directorate General of Foreign Trade (DGFT) will publish a notice. Wheat exports from Russia and Ukraine account for about one-fourth of the worldwide wheat trade. The conflict between the two nations has disrupted the global wheat supply chain, boosting the demand for Indian wheat.
As a consequence, the price of wheat has increased on the domestic market. In order to protect the nation’s food security, the government prohibited wheat exports in May. However, this led to an increase in wheat flour demand abroad.
During April-July 2022, the exports of wheat flour from India increased by 200 percent compared to the same period in 2021.
The rising demand for wheat flour on the international market caused a substantial increase in the commodity’s price on the local market. “Previously, there existed a policy of neither restricting or prohibiting the export of Wheat flour. Therefore, a partial revision of the policy was necessary by removing the exemption from export bans/restrictions for wheat flour in order to guarantee food security and halt the rise in wheat flour prices in the nation “the new statement.