After Wheat, India Puts Curbs on Exporting Flour & Related Products

The restriction guidelines came after the government noticed that many exporters were importing unusual quantities of wheat. Media reports suggest that India exported almost 96,000 tons of wheat flour in April 2022, up from 26,000 tons in the same period last year.

The government of India on Thursday imposed restrictions on exporting wheat flour and other products, after it banned wheat exports in May.

The fresh curbs came about to insulate domestic markets from the global wheat crisis.

As per the new guidelines, it has been made mandatory for all exporters to seek prior permission from the inter-ministerial panel on wheat export before taking any outbound shipment, the government said in a notification issued on Thursday.

“The export remains free but subject to the recommendation of the inter-ministerial committee on export of wheat,” the Directorate General of Foreign Trade said.

The restriction will be applied to wheat flour, "maida" (fine flour), semolina, and wholewheat meat, and is to take effect from July 12.

According to Business Standard, “These curbs have been imposed to ensure that fly-by-night operators and those in the market to make quick money cannot export unusual quantities of wheat flour to bypass the ban on wheat exports.”

Generally, India produces 109 million tons of wheat, but exports around seven million tons in a year. However, so far this year India has already exported more than a record seven million tons of wheat, worth around $2.12 billion, which in value terms was 274 percent more than the same period last year.

Reuters also suggested that after the ban, demand for wheat flour jumped in neighboring countries struggling to secure wheat at lower prices from other suppliers.

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