Today the cabinet meeting held in Delhi and this meeting was led by prime minister Narendra Modi as in this cabinet meeting of economic affairs the proposal was passed of amendment of policy of exemption for wheat or meslin flour for export restriction. This proposal got approved by PM.
As this amendment which is passed in cabinet will allow to put the restriction on the export of wheat flour. Which can be ensure the price rise of wheat flour and ensure food security which will be most valuable to the society.
As this amendment will be applied by directorate general of foreign trade (DGFT) and the notification will be issued.
Russia & Ukraine is the most important exporters of wheat accounting for around 1/4th of the world wheat trade. The conflict between them crystal rectifier to the world wheat offers chain disruptions increasing demand of Indian wheat. As a result, the value of wheat in domestic market showed a rise. to make sure food security of 1.4 billion individuals of the country, the choice was taken to place a prohibition on export of wheat in may2022.
However, because of prohibition on export of wheat (which was done to place a check on increasing costs in domestic market and to make sure food security within the country), the demand for flour has exaggerated in foreign markets and it’ s exports from Asian nation have registered a growth of 200% throughout April-July 2022 compared to the corresponding amount in 2021.The exaggerated demand for flour in international market crystal rectifier to vital worth rise of flour within the domestic market.
Earlier, there was a policy to not interdict or place any restrictions on the export of flour. Therefore, a partial modification of the policy was needed by retreating the exemption from ban/ restrictions on export for flour to make sure food security and place a check on mounting costs of flour within the country.
