New Delhi, Aug 25: The Union Cabinet Committee on Economic Affairs (CCEA) on Thursday approved a proposal to restrict the export of wheat flour or meslin flour to curb rising prices of the commodity.
This would allow restrictions on the export of wheat flour, which would not only allow its prices to ease but also ensure food security for the vulnerable sections of society, official sources said. The Directorate General of Foreign Trade (DGFT) is expected to issue a notification regarding the decision, they said.
The decision to restrict the export of wheat flour comes in the wake of a significant rise in the commodity’s demand globally after a ban on wheat exports had been imposed earlier this year in May.
Due to the Russia-Ukraine war, there have been disruptions in the global wheat supply chain, which led to the increase in demand for Indian wheat.
Both the warring nations are major exporters of wheat and account for one-fourth of the commodity’s global trade.
As a result of rising demand, domestic prices of wheat rose sharply, thus forcing the government to prohibit wheat exports in May.
This, however, led to a rise in demand for wheat flour in foreign markets. Sources said that India registered a 200 percent growth in the export of wheat flour during the April-July 2022 period over the corresponding period of last year. The rising demand for wheat flour also resulted in a spike in its prices domestically, thus leading to the restriction on its export on Thursday.
