Cabinet restricts exports of wheat flour to check prices

India on Thursday decided to restrict wheat flour exports to check rising prices in the domestic market and ensure food security.

The Cabinet Committee on Economic Affairs (CCEA), which met under the chairmanship of Prime Minister Narendra Modi, approved a proposal to amend the policy of exemption for wheat or meslin flour from export restrictions/ ban, an official statement said.

The Directorate General of Foreign Trade (DGFT) will issue a notification to this effect, it said.


"Earlier, there was a policy not to prohibit or put any restrictions on the export of wheat flour," the government said in a statement, adding that a partial modification of the policy was required to withdraw the exemption from ban/restrictions in order to ensure food security and put a check on mounting prices of wheat flour in the country.

Russia and Ukraine are the major exporters of wheat, accounting for around one-fourth of the global wheat trade. Russian invasion of Ukraine led to global wheat supply chain disruptions, thus increasing the demand for Indian wheat globally.

As a result, the price of wheat in the domestic market spiked, prompting the government to prohibit wheat exports in May.

But subsequently the demand for wheat flour increased in foreign markets and its exports from India registered a growth of 200% year on year during April-July 2022, the government said in a statement.

The increased demand for wheat flour in the international market led to significant price rise in the domestic market.

In July, DGFT had in a notification said the government had imposed a condition on exports of wheat flour or atta, maida and semolina. "Export policy of wheat flour (atta) remains free, but export shall be subject to recommendation of the inter-ministerial committee on export of wheat," it had said.