Govt Restricts Export of Wheat Flour

0

GG News Bureau

New Delhi, 25th August. The government decided on Thursday to restrict wheat flour exports in order to control rising commodity prices.

Prime Minister Narendra Modi presided over a meeting of the Cabinet Committee on Economic Affairs (CCEA) where the decision was made.

“The decision of the Cabinet will now allow to put a restriction on the export of Wheat Flour which will ensure a curb on rising prices of wheat flour and ensure food security of the most vulnerable sections of the society,” an official statement stated.

A notification to this effect will be released by the Directorate General of Foreign Trade (DGFT).

Russia and Ukraine are the major wheat exporters, accounting for roughly one-fourth of 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 in 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.

Increased demand for wheat flour in the international market resulted in significant price increases in the domestic market.

“Earlier, there was a policy not to prohibit or put any restrictions on the export of Wheat flour. Therefore, a partial modification of the policy was required by withdrawing the exemption from ban/ restrictions on export for wheat flour in order to ensure food security and put a check on mounting prices of wheat flour in the country,” the statement further said.

Leave A Reply

Your email address will not be published.