To contain rising price, govt puts curb on wheat flour


Image Source : PTI The move is undertaken by the government in order to contain the rising cost of products in the domestic market.

Wheat flour export ban: The government has decided to restrict export of wheat flour (atta), maida and semolina to contain the rising price. This move comes after government banned export of wheat in the month of May. Exporters of these commodities would now need approval of the inter-ministerial committee on export of wheat for the shipments from July 12.

“Export policy of wheat flour (atta) remains free but export shall be subject to recommendation of inter-ministerial committee on export of wheat,” the Directorate General of Foreign Trade (DGFT) said in a notification.

The new approval framework will be applicable for wheat flour (atta), maida, semolina (rava/ sirgi), wholemeal atta and resultant atta. According to the notification, the necessary modalities with regard to quality of wheat flour will be notified separately.

The provisions under the Foreign Trade Policy regarding transitional arrangement would not be applicable under this notification. In 2021-22, India exported wheat flour worth USD 246.57 million. In May, India banned wheat exports in a bid to check high prices amid concerns of wheat output being hit by a scorching heat wave. 

The United Arab Emirates (UAE) had earlier ordered a suspension of exports and re-exports of wheat and wheat flour originating from India for four months. The Gulf nation’s move follows India banning the export of wheat last month to check the surge in local prices.

In a statement said a moratorium has been imposed “on the export and re-export of wheat and wheat flour originating from the Republic of India, including free zones, for a period of four months starting from May 13, 2022.”

This “decision comes in view of the international developments that have affected trade flows, and in appreciation of the solid and strategic relations that bind the UAE and India, especially after the signing of the Comprehensive Economic Partnership Agreement between the two countries and the Indian government’s approval to export wheat to the UAE for domestic consumption.” India and UAE had in February signed the Comprehensive Economic Partnership Trade Agreement (CEPA) to cut all tariffs on each other’s goods and aims to increase their annual trade to USD 100 billion within five years. The pact took effect on May 1.

Also Read: UAE suspends exports and re-exports of Indian wheat for four months

Also Read: After India declared ‘wheat export ban’, global prices hit record high

Latest Business News





Source link

Leave a Reply