The export of wheat flour will now be restricted in India in order to “ensure a curb on rising prices.” On Thursday, the Prime Minister Narendra Modi-led Cabinet Committee on Economic Affairs (CCEA) made the decision.
According to the CCEA, limiting wheat flour exports “will ensure a curb on rising wheat flour prices and ensure food security of the most vulnerable sections of society.”
The conflict between Ukraine and Russia, according to the government, caused disruptions in the world’s wheat supply chains, which raised demand for Indian wheat. The May ban on the export of wheat (grain) led to a rise in the demand for wheat flour in international markets. In comparison to the corresponding period in 2021, its exports from India increased by 200 percent in April through July 2022.
Given that Ukraine is one of the biggest exporters of wheat in the world, the Ukraine-Russia war had an impact on wheat prices on the global market. Despite being the second-largest producer of wheat, India does not export much.
The price of wheat flour significantly increased domestically as a result of rising global demand. The note made it clear that there had previously been a policy to not forbid or impose any limitations on the export of wheat flour. In order to ensure food security and control the nation’s rising wheat flour prices, a partial modification of the policy was therefore necessary. This involved removing the exemption from the ban or restrictions on the export of wheat flour.