After wheat, India now curbs the export of wheat flour and related products

The Centre has made it mandatory for all exporters to seek prior permission from the inter-ministerial committee on wheat export before undertaking any outbound shipment

Wheat, wheat flour
As per a notification from the Directorate General of Foreign Trade (DGFT) issued on July 6, the arrangement will come into force from July 12.
Sanjeeb Mukherjee New Delhi
3 min read Last Updated : Jul 08 2022 | 12:37 AM IST
The government has restricted the export of wheat flour and other related products, such as maida, rava (samolina), wholemeal atta and resultant atta. All exporters will need to seek prior permission from an inter-ministerial committee on export of wheat before undertaking any outbound shipment. The Centre had banned the export of wheat in May. 

According to a Directorate General of Foreign Trade notification issued on July 6, the curbs will come into force from July 12.  

Until July 12, those shipments will be allowed where loading on the ship had started before July 6 or the consignments were handed over to the customs department before the notification was issued.

However, unlike wheat, there has been no outright ban on the export of wheat flour and related products.

The curbs have been imposed despite some stabilisation in wheat flour prices since May 13, when wheat export was banned.

Some trade sources said exports were being curbed to ensure that fly-by-night operators and those in the market to make fast money did not export unusually high volume of wheat flour to bypass the ban on wheat export.

“Wheat flour export will now be under control. Earlier the flour export was at a peak. However, atta (wheat flour) prices have already softened, even before the ban, and now they might go down further. But it will be for a short time because the coming festival season and stopping of open market sale of wheat by the central government will keep prices supported. The fundamentals of demand and supply still support wheat and atta prices,” Rahul Chauhan, commodity analyst at iGrain India told Business Standard.

According to the food ministry, India exported 95,167 tonnes of wheat flour (atta) in April 2022, which stood at around 26,000 tonnes in April 2021, a jump of almost 267 per cent.

Meanwhile, exporters of wheat products in small consumer packs of 5 and 10 kilograms have approached the commerce ministry to allow them to export freely without any curbs. 

"Since, this segment of exporters have built this business in a close network with overseas buyers, if there is any restriction in export of such commodities it will be a big disaster," the small exporters said. They said around 75000 tonnes of wheat flour and related products are annually exported in small pack sizes. 

Overall, In FY22, India exported a record of over 7 million tonnes of wheat, worth around $2.12 billion, which in value terms was 274 per cent more than the same period last year.

But in FY23, around 4.5 million tonnes of wheat had been contracted for exports till the time of ban, according to official records.

Of this, 1.47 million tonnes was shipped in April 2022, while in April 2021, around 0.24 million tonnes was shipped. If the exports weren’t banned, India could have exported around 8-10 million tonnes of wheat, according to experts.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :wheatIndian exportsDGFTexport rulesexport sectorWheat productionMinistry Of Agricultureagricultural sector

Next Story