The Cabinet Committee on Economic Affairs (CCEA), chaired by PM Narendra Modi today (25 Aug) approved a proposal for amendment of the policy of exemption for wheat / meslin flour (HS Code 1101) from the export ban.
The Ministry of Commerce and Industry in a press release informed that the Director General of Foreign Trade (DGFT) would soon issue the notification to this effect.
The press release said that the approval will now allow to put a limit on wheat flour export that would guarantee a curb on increasing prices of wheat flour & ensure food security for the most weak sections of the society.
The amendment to the export policy has come months after India prohibited wheat exports amid the rise in the price of wheat in domestic markets owing to the effects of Russia Ukraine war. The decision was taken to protect the food security of 1.4 billion population in India.
The press release also said that previously there was a policy not to ban or put any restrictions on the export of wheat flour. Hence, a partial modification of the policy was needed by withdrawing the exemption from the ban on the export of atta in order to ensure food security & put a check on the rising prices of wheat flour in the country.
It must be noted that Russia & Ukraine are the biggest wheat exporters. The conflict between the two nations caused disruptions in the global wheat supply chain further escalating the demand for Indian wheat.
But due to the ban on export of wheat, the demand for wheat flour has gone up in foreign markets & its exports from India registered a growth of 200 percent in April-July 2022, as compared to the corresponding period in 2021.
