Mumbai: India’s cabinet on August 25 approved a policy to restrict wheat flour exports to calm prices in the local market, the government said in a statement.
New Delhi banned wheat exports in mid-May as a scorching heatwave curtailed output and domestic prices hit a record high. In July India asked traders to secure permission before exporting wheat flour.
Also Read: India Bans Wheat Exports With Immediate Effect in a Bid to Control Domestic Prices
The ban on wheat exports boosted demand for Indian wheat flour and the country’s flour exports jumped 200% during April-July 2022 from a year ago and lifted prices in the local market, the government said.
“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….to ensure food security and put a check on mounting prices,” it said.
Local wheat prices jumped to a record Rs 24,500 ($306.71) per tonne this week.
That was up nearly 20% from recent lows that followed the government’s surprise ban on exports on May 14, ending hopes India could fill the market gap left by a plunge in exports from the Black Sea region following Russia’s Feb. 24 invasion of Ukraine.
(Reuters)