Export Policy for Wheat or Meslin Flour: The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, Shri Narendra Modi recently approved the proposal for amendment of policy of exemption for Wheat or Meslin Flour (HS Code 1101) from export restrictions/ ban.

Key Points:

• The decision will now make it possible to impose export restrictions on wheat flour.
• This in turn will prevent the price of wheat flour from rising and will also ensure the food security of the most vulnerable members of society.
• A notification to this effect will be issued by the Directorate General of Foreign Trade (DGFT).

Background:

• Russia & Ukraine are the major exporters of wheat accounting for around 1/4th of the global wheat trade.
• The war between them led to the global wheat supply chain disruptions increasing demand of Indian wheat.
• As a result, the price of wheat in domestic market showed an increase.
• In order to ensure food security of 1.4 billion people of the country, the decision was taken to put a prohibition on export of wheat in May 2022.
• However, due to prohibition on export of wheat (which was done to put a check on increasing prices in domestic market and to ensure food security in the country), the demand for wheat flour has increased in foreign markets and it’ s exports from India have registered a growth of 200% during April-July 2022 compared to the corresponding period in 2021.
• The increased demand for wheat flour in international market led to significant price rise of wheat flour in the domestic market.
• Earlier, 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 by withdrawing the exemption from ban/ restrictions on export for Wheat Flour in order to ensure food security and put a check on mounting prices of Wheat flour in the country.