India allows limited wheat flour exports after 3-year ban
What's the story
India, the world's second-largest producer of wheat, has lifted a ban imposed in 2022 on the export of certain wheat products. The Directorate General of Foreign Trade (DGFT) issued a notification, allowing the export of up to 500,000 tons of wheat flour and related products like semolina. This decision comes as India anticipates a bumper harvest that could improve domestic supplies.
Ongoing limitations
Export restrictions still in place
Despite this new allowance, it's important to note that the ban on wheat exports remains in effect. The decision to partially lift the ban comes as India engages in trade talks with the US. Washington has been pushing New Delhi to open its agricultural sector and give more access to American farm goods.
Global impact
India's move could ease global supply
The decision to allow limited exports comes after the country witnessed its best monsoon in five years. This has prompted India to consider lifting its curbs, at least temporarily. The move is also in response to calls from the local industry to capitalize on overseas demand. India's partial return could ease prices and provide relief to import-dependent countries across Asia, Africa, and the Middle East by improving global supply.