Cabinet approves Export Policy for Wheat or Meslin Flour

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, Shri Narendra Modi has approved the the proposal for amendment of policy of exemption for Wheat or Meslin Flour (HS Code 1101) from export restrictions/ ban.

Impact:

The approval now makes it possible to impose export restrictions on wheat flour, which will prevent the price of wheat flour from rising and ensure the food security of the most vulnerable members of society.

Implementation:

Directorate General of Foreign Trade (DGFT) shall issue a notification to this effect.

Background:

The largest wheat exporters, representing around one-fourth of the world’s wheat trade, are Russia and Ukraine. Their battle caused interruptions in the world’s wheat supply chain, which raised demand for Indian wheat. As a result, wheat prices increased on the domestic market. In May 2022, it was decided to ban wheat exports in order to protect the country’s 1.4 billion citizens’ access to food.

However, due to the ban on the export of wheat (which was implemented to restrain the rise in domestic market prices and guarantee food security in the nation), the demand for wheat flour has increased in foreign markets, and India’s exports of the commodity have increased by 200% from April to July 2022 in comparison to the same period in 2021.

Wheat flour prices have risen in the domestic market as a result of the rising demand for it on the global market.

Prior until now, it was policy not to forbid or restrict the export of wheat flour. To preserve food security and control the nation’s rising wheat flour costs, a partial revision of the policy was therefore necessary, namely the removal of the exemption from export bans or limits for wheat flour.