The Cabinet on Thursday approved the proposal to amend the policy of exemption for wheat or meslin flour from export restrictions/ban, it said in a statement.

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The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, Shri Narendra Modi, decided to put restrictions in place on the export of wheat or meslin flour to reduce the rising rates of the commodity.

The Cabinet's decision "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", an official statement said. The Directorate General of Foreign Trade (DGFT) will issue a notification in this regard.

Russia and Ukraine are major wheat exporters as they account for around one-fourth of the global wheat trade. The Russia-Ukraine war has led to a disruption in global wheat supply, thereby increasing demand for Indian wheat. As a result, the wheat price in the domestic market has increased.

To ensure the country's food security, the government had put restrictions on wheat exports in May. This resulted in a jump in wheat flour demand overseas. Wheat flour exports from India registered a 200 percent growth during April to July 2022, compared to the corresponding period in 2021.

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The increased overseas demand led to a significant price rise of the commodity in the domestic market. Earlier, there was a policy to not restrict the export of wheat flour, which is why a partial modification of the policy was required by withdrawing the exemption from ban/restrictions on export in order to ensure food security and to put a check on the mounting wheat flour prices in the country, the statement said.

"The Cabinet Committee on Economic Affairs ... has approved the proposal for amendment of policy of exemption for wheat or meslin flour from export restrictions/ ban," it added. In July, a DGFT notification said the government had imposed a condition on exports of wheat flour or atta, maida and semolina.

"Export policy of wheat flour (atta) remains free but export shall be subject to recommendation of inter-ministerial committee on export of wheat," the notification had said. When asked about the Cabinet decision, an official said that earlier the export regime for wheat flour was "free" but now it is restricted.

In 2021-22, India exported wheat flour worth $246 million. The exports stood at about $128 million during April-June this fiscal.

Also Read: Atta exporters will need government approval hereon

With PTI inputs