India Lifts Wheat Flour Export Ban: Policy Shift to ‘Free’
By ThePip Desk
India revises wheat flour export policy, moving Atta, Maida, and Samolina from ‘prohibited’ to ‘free’ to balance domestic supply and global trade.
The Directorate General of Foreign Trade (DGFT) has officially revised India’s export policy, moving wheat flour and its various related products from the ‘prohibited’ category to ‘free’. This significant amendment impacts several key agricultural commodities in the nation’s trade framework.
Affected Wheat Products Now Under ‘Free’ Export
The policy specifically includes Wheat or Meslin Flour (Atta), Maida, and Samolina (Rava / Sirgi). Additionally, Wholemeal atta and resultant atta are now categorized under ‘free’ export.
These policy changes follow a period of stringent export controls. Initial restrictions on wheat exports were first implemented on May 13, 2022, with similar measures extended to wheat flour by August 2022.
These actions aimed to address surging domestic prices and to ensure food security for India’s significant population. Global wheat supplies had faced considerable disruption due to the Russia-Ukraine conflict, necessitating government intervention.
The government had previously identified a gap, noting the absence of a specific policy to restrict wheat flour exports. This required a policy modification to effectively manage rising wheat flour prices within the country.
Despite the general prohibition, certain specific wheat products were still permitted for export without facing these restrictions.
Increased Stock Availability Supports Recent Export Authorizations
More recently, in February of the current year, the central government authorized a substantial increase in exports. This included 25 Lakh Metric Tonnes (LMT) of wheat and an additional 5 LMT of wheat products.
This decision was attributed to increased stock availability within the country. The government intends for these measures to stabilize domestic prices, enhance market liquidity, and facilitate efficient stock rotation.
Furthermore, these authorized exports aim to improve farmers’ income while simultaneously upholding national food security.
This latest revision to the export policy for wheat flour and its derivatives aligns with the government’s ongoing efforts to balance domestic supply with market dynamics. It reflects a strategic response to both internal stock levels and broader economic objectives for the agricultural sector.