NEW DELHI: The Union Cabinet Committee on Economic Affairs (CCEA) on today, August 25, approved a proposal to restrict export of wheat flour or meslin flour to curb rising prices of the commodity
According to government sources, this would permit restrictions on the export of wheat flour, allowing its prices to decrease while simultaneously ensuring food security for the weaker segments of society. The Directorate General of Foreign Trade (DGFT) is expected to issue a notification regarding the decision, they said.
The decision to limit wheat flour exports was made in response to a sharp increase in the demand for the product worldwide following the imposition of a wheat export embargo earlier this year in May.
The Russia-Ukraine conflict has caused crisis in the world's wheat supply chain, which has increased demand for Indian wheat. One-fourth of the world's commerce in this commodity is conducted by the two in war-torn countries, both of which are significant wheat exporters.
Because of the steep increase in domestic wheat prices brought on by the increased demand, the government was forced to halt wheat exports in May.
However, this resulted in a spike in the demand for wheat flour in international markets. According to sources, India saw a 200 percent increase in wheat flour exports from April to July 2022 compared to the same time previous year. Wheat flour prices increased as a result of rising domestic demand, which prompted the limitation on its export on Thursday.
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