The central government on Thursday decided to put restrictions on the export of wheat flour to curb rising prices of the commodity, the PTI reported.
According to the report, the decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi.
The decision of the Cabinet “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 to this effect.
ALSO READ | 7th Pay Commission: Know How to File Form 10E To Claim Tax Relief On Salary Arrears
Russia and Ukraine are the major exporters of wheat, accounting for around one-fourth of the global wheat trade. The war between the two countries has led to global wheat supply chain disruptions, thus increasing the demand for Indian wheat.
As a result, the price of wheat in the domestic market has showed an increase.
In order to ensure food security of the country, the government put a prohibition on export of wheat in May. However, this caused a jump in overseas demand for wheat flour.
Wheat flour 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 the international market led to significant price rise of the commodity 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 statement added.