The Indian government said in a statement on Thursday that the country had approved a policy of restricting wheat flour exports, in a bid to bring down prices on the domestic market.
The move comes after New Delhi banned wheat exports in mid-May to secure domestic supplies amid a heatwave. This heatwave threatened the harvest and sent prices soaring to a record high. Last month, the government extended the policy to wheat flour, but stopped short of banning its export. The government instead demanded that traders secure permission before shipping the product abroad.
However, the ban on wheat exports had the effect of raising demand for Indian wheat flour and accelerated flour exports. India’s wheat exports surged 200% year-on-year between April and July 2022. As a result, prices on the domestic market also rose, forcing the government to intervene.
“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,” New Delhi said in a statement on Thursday, as cited by Reuters.
