Insight Online News
New Delhi, Aug 25 : In a bid to cool domestic food prices, the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on Thursday approved curbs on export of wheat or meslin flour.
The move would allow to put a restriction on the export of wheat flour, thus checking the rise in prices of wheat flour. This will also ensure food security to the most vulnerable sections of the society.
The Directorate General of Foreign Trade (DGFT) will issue a notification, an official statement said.
In the wake of Russia-Ukraine war and supply of wheat from the two countries getting disrupted, prices of wheat rose globally. Demand for Indian wheat increased substantially, leading to rise in domestic prices too.
As the prices started rising, the government restricted wheat exports from the country citing food security.
The government on Thursday said that due to prohibition on export of wheat, demand for wheat flour has increased in foreign markets and its exports from India have registered a growth of 200 per cent in April-July 2022 compared to the corresponding period in 2021.
The increased demand for wheat flour in international market has led to significant price rise of wheat flour 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 official statement said.