Government bans exports of more wheat-related products

Following the ban on the export of wheat on May 13 this year, the government has now banned the exports of maida, semolina and whole wheat atta. This is being done to control prices of these products ahead of the festive season.

The Russia-Ukraine war has already disrupted the global supply chain, which accounts for around 25% of global wheat export, leading to soaring prices of commodities market. Now, there is rising demand for wheat export from India, which has led to a hike in the prices of wheat above the Minimum Support Price (MSP) by 14-19%. Therefore the government has decide to curb the inflation by banning the export of wheat and its related products.

According to trade indicators, India has exported around 3.9 million tonnes of wheat this year, which is double last year’s export. But as India is also one of the largest consumers of wheat products, the government has decided to ban these products due to the upcoming festive season. The ban also accounts for the food safety and procurement of wheat products due to lower wheat production amid the heat waves of March and April in 2022. However, according to the Directorate General of Foreign Trade (DGFT), the export of wheat will be permitted in certain conditions based on the government evaluation.