Free Trade Zones

To contain rising prices, the government puts a brake on wheat flour

Image source: PTI The movement is undertaken by the government in order to contain the rise in the cost of products on the domestic market.

Wheat flour export ban: The government has decided to restrict exports of wheat flour (atta), maida and semolina to contain rising prices. The move comes after the government banned the export of wheat in May. Exporters of these products would now need approval from the inter-ministerial wheat export committee for shipments from July 12.

“The wheat flour export policy (atta) remains free but the export will be subject to the recommendation of the inter-ministerial committee on wheat export,” the Directorate General for Foreign Trade (DGFT) said in a notification.

The new approval framework will apply to wheat flour (atta), maida, semolina (rava/sirgi), whole atta and resulting atta. According to the notification, the necessary modalities regarding the quality of wheat flour will be notified separately.

The provisions of the foreign trade policy concerning the transitional provisions would not be applicable in the context of this notification. In 2021-2022, India exported wheat flour worth USD 246.57 million. In May, India banned wheat exports in a bid to control high prices as wheat production was hit by a scorching heat wave.

The United Arab Emirates (UAE) had previously ordered a suspension of exports and re-exports of wheat and wheat flour from India for four months. The Gulf nation’s move follows India’s ban on wheat exports last month to control soaring local prices.

In a statement, a moratorium was imposed “on the export and re-export of wheat and wheat flour originating in the Republic of India, including free zones, for a period of four months from May 13. 2022″.

This “decision comes in view of international developments that have affected trade flows, and in recognition of the strong and strategic relationship between the United Arab Emirates and India, particularly after the signing of the Comprehensive Economic Partnership Agreement between the United Arab Emirates and India. two countries and the Indian government permission to export wheat to the UAE for domestic consumption.” India and the UAE had signed the Comprehensive Economic Partnership (CEPA) trade agreement in February to reduce all tariffs on each other’s goods and aim to increase their annual trade to $100 billion within five years.The pact went into effect on May 1.

Also read: UAE suspends exports and re-exports of Indian wheat for four months

Also read: After India declares ‘wheat export ban’, world prices hit record high

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