Cabinet approves export policy for wheat

India

oi-Vicky Nanjappa

New
Delhi,
Aug
25:
The
Cabinet
Committee
on
Economic
Affairs,
chaired
by
the
Prime
Minister,
Narendra
Modi
has
approved
the
the
proposal
for
amendment
of
policy
of
exemption
for
Wheat
or
Meslin
Flour
(HS
Code
1101)
from
export
restrictions/
ban.

The
approval
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.
Directorate
General
of
Foreign
Trade
(DGFT)
shall
issue
a
notification
to
this
effect,
a
release
from
the
Cabinet
Committee
on
Economic
Affairs
said.

Russia
and
Ukraine
are
the
major
exporters
of
wheat
accounting
for
around
1/4th
of
the
global
wheat
trade.
The
conflict
between
them
led
to
the
global
wheat
supply
chain
disruptions
increasing
demand
of
Indian
wheat.
As
a
result,
the
price
of
wheat
in
domestic
market
showed
an
increase.
In
order
to
ensure
food
security
of
1.4
billion
people
of
the
country,
the
decision
was
taken
to
put
a
prohibition
on
export
of
wheat
in
May
2022.

Cabinet
approves
interest
subvention
of
1.5%
on
short-term
farm
loans

However,
due
to
prohibition
on
export
of
wheat
(which
was
done
to
put
a
check
on
increasing
prices
in
domestic
market
and
to
ensure
food
security
in
the
country),
the
demand
for
wheat
flour
has
increased
in
foreign
markets
and
it’ s
exports
from
India
have
registered
a
growth
of
200
per
cent
during
April-July
2022
compared
to
the
corresponding
period
in
2021.

The
increased
demand
for
wheat
flour
in
international
market
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.