Govt bans export of wheat flour, maida, semolina to curb rising prices
28 August, 2022 | Pranay Lad
To combat rising food prices, the government has prohibited the export of wheat flour, maida, semolina, and wholemeal atta. Earlier in May, the government also prohibited wheat exports. However, in...
To combat rising food prices, the government has prohibited the export of wheat flour, maida, semolina, and wholemeal atta. Earlier in May, the government also prohibited wheat exports.
However, in notifying a decision of the Union Cabinet, the Directorate General of Foreign Trade (DGFT) stated that exports of these items would be permitted in certain cases, subject to permission from the government of India.
According to the DGFT’s notification, “the export policy of items (wheat or meslin flour, maida, semolina, wholemeal atta, and resultant atta) is amended from free to prohibited.” Rawa and sirgi are also components of semolina.
It also stated that the provisions regarding transitional arrangements in the Foreign Trade Policy 2015-20 will “not” be applicable under this notification.
To combat rising commodity prices, the government decided to restrict the export of wheat or meslin flour on August 25.
The decision was made at a Cabinet Committee on Economic Affairs meeting (CCEA).
“The Cabinet Committee on Economic Affairs…has approved the proposal for amending the policy of exemption from export restrictions/ban for wheat or meslin flour,” an official statement said.
Russia and Ukraine are the major wheat exporters, accounting for roughly one-fourth of the global wheat trade. The war between the two countries has disrupted the global wheat supply chain, increasing demand for Indian wheat.
As a result, the price of wheat on the domestic market has risen.
In order to ensure the country’s food security, the government banned wheat exports in May. However, this resulted in an increase in overseas demand for wheat flour.
Wheat flour exports from India increased by 200 percent between April and July 2022 when compared to the same period in 2021.
India exported wheat flour worth USD 246 million in 2021-22. During the fiscal year April-June, exports totaled approximately USD 128 million.
According to consumer affairs ministry data, the all-India average retail price of wheat has risen by more than 22% to 31.04 per kg as of August 22, compared to 25.41 per kg the previous year.
Wheat production is expected to be lower as a result of a heat wave that caused shrivelled grains in the northern states of Punjab and Haryana.
The Roller Flour Millers’ Federation has expressed concern about the scarcity of wheat and the recent price increase.
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