Centre restricts wheat flour exports to stabilise soaring local prices

MUMBAI (Reuters) – India’s cabinet on Thursday approved a policy to restrict wheat flour exports to calm prices in the local market, the government said in a statement.

New Delhi banned wheat exports in mid-May as a scorching heatwave curtailed output and domestic prices hit a record high. In July India asked traders to secure permission before exporting wheat flour.

The ban on wheat exports boosted demand for Indian wheat flour and the country’s flour exports jumped 200% during April-July 2022 from a year ago and lifted prices in the local market, the government said.

“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….to ensure food security and put a check on mounting prices,” it said.

Local wheat prices jumped to a record 24,500 rupees ($306.71) per tonne this week.

That was up nearly 20% from recent lows that followed the government’s surprise ban on exports on May 14, ending hopes India could fill the market gap left by a plunge in exports from the Black Sea region following Russia’s Feb. 24 invasion of Ukraine.

($1 = 79.8800 Indian rupees)

 

(Reporting by Rajendra Jadhav; Editing by Emelia Sithole-Matarise)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor