New Delhi: On Thursday, the Union Cabinet Committee on Economic Affairs (CCEA) adopted a proposal to limit the export of wheat flour or meslin flour in an effort to lower the commodity's rising price.
According to government sources, this would permit restrictions on the export of wheat flour, allowing its prices to decrease while simultaneously ensuring food security for the weaker segments of society.
According to them, a notification about the choice will likely be issued by the Directorate General of Foreign Trade (DGFT).
The decision to restrict the export of wheat flour comes in the wake of a significant rise in the commodity's demand globally after a ban on wheat exports had been imposed earlier this year in May, IANS reported.
Due to the Russia-Ukraine war, there have been disruptions in the global wheat supply chain, which led to the increase in demand for Indian wheat.
Both the warring nations are major exporters of wheat and account for one-fourth of the commodity's global trade.
As a result of rising demand, domestic prices of wheat rose sharply, thus forcing the government to prohibit wheat exports in May.
This, however, led to a rise in demand for wheat flour in foreign markets. Sources said that India registered a 200 per cent growth in the export of wheat flour during the April-July 2022 period over the corresponding period of last year.
The rising demand for wheat flour also resulted in a spike in its prices domestically, thus leading to the restriction on its export on Thursday.