After the ban on wheat export in May, the government again brought new export bans. These bans include an export ban on wheat flour, maida, and semolina. The actions are taken by the government to compensate for the rising prices.
The government of India issued new orders for the prohibition of the export of goods. These include heat flour, maida, semolina, and wholemeal atta to reach its goal of cooling down the prices. Semolina also includes rawa and sirgi.
On August 25th the decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA). After which the government put restrictions on the export of wheat or meslin flour.
According to the Union Cabinet, the Directorate General of Foreign Trade (DGFT), “Export policy of items such as wheat or meslin flour, maida, semolina, wholemeal atta, and resultant atta is amended from free to prohibited.”
An official statement also read, “The Cabinet Committee on Economic Affairs…has approved the proposal for amendment of the policy of exemption for wheat or meslin flour from export restrictions/ban.”
Along with this, however, the DGFT’s notification also announced that the exports of these items can be allowed. Allowance given in certain cases under the permission of the government of India.
Reason for Restrictions
The restrictions on exports are one of the ways the government is trying to curb the prices.
The war between Ukraine and Russia, the major exporters of wheat, has led to a shortage of wheat. Consequently there a higher demand for wheat in the international markets. With Indian wheat now high in demand the continuous exports were resulting in increase of prices. Prices of products in Indian markets itself is increasing.
Therefore, in order to provide national food security the government has issued some orders to regulate exports. After the banning of the export of wheat in May, the government now banned the exports of products of wheat as well.
One of the other reasons is that the wheat farms have faced a shortage of the grain due to excess heat waves in the states of Haryana and Punjab. This has resulted in a shortage which is again causing an increase in prices.
Some federations like the Industry body Roller Flour Millers’ Federation even raised concerns regarding the unavailability of wheat and the rise in prices in the last few days.
