India will restrict export of wheat flour given the rising prices of the commodity and to “ensure food security”. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Thursday approved changes in the policy of wheat exports. It removed exemptions on wheat or meslin flour from export restrictions or ban.

According to a statement, the Director General of Foreign Trade (DGFT) will soon issue a notification to this effect.

“The approval will now allow restriction on the export of wheat flour ensuring curb on rising prices, and providing food security to the most vulnerable sections of the society,” the statement mentioned.

The amendment to the policy come months after the Centre banned wheat exports amid increase in wheat prices in the domestic markets following Russia’s invasion of Ukraine.

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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 exports of the commodity.

Russia and Ukraine are the major exporters of wheat accounting for around one-fourth of the global wheat trade. The conflict between them led to the global supply chain disruptions increasing demand of Indian wheat.

As a result, the wheat prices in domestic market witnessed a rising trend. However, due to the prohibition on wheat export, the demand for the commodity shot up in foreign markets and its exports from India saw a 200 per cent growth y-o-y, during the April-July 2022.

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