You can now export wheat flour from India again
What's the story
The Indian government has lifted the export ban on wheat flour and related products with immediate effect. The decision was announced through an official release, amending the Export Policy of Wheat Flour and Related Products provision to allow overseas shipments. This is the first time since 2022 that such a move has been made, marking a significant shift in India's trade policy for these products.
Policy background
Export ban imposed in August 2022
The Indian government had imposed export restrictions on wheat flour and related products in August 2022.
The decision came after India's wheat export curbs triggered strong overseas demand for flour and other processed wheat products.
Now, the revised policy covers a range of wheat or meslin flour products including atta, maida, semolina or rava/suji, wholemeal atta and resultant atta.
Trade impact
Wheat trade policy tightened
India's wheat trade policy was tightened in 2022 after the Russia-Ukraine war disrupted global grain supplies and pushed up domestic wheat prices.
The government had imposed restrictions in May 2022 over food-security concerns and the need to ensure adequate domestic supplies.
The latest move effectively reopens a trade channel that had remained restricted for about four years, giving Indian exporters greater flexibility to sell their products abroad.
Policy revision
Export policy for certain categories of wheat also revised
Along with the export ban on wheat flour and related products, the government has also revised the export policy for certain categories of wheat and durum wheat.
These have been changed from "prohibited" to "free," according to DGFT notifications issued today.
The move marks a significant shift in India's wheat trade policy.
Market sensitivity
Policy shift opens up new avenues for Indian exporters
The policy shift could introduce another source of wheat-based products into global markets, particularly at a time when international food trade is still sensitive to geopolitical disruptions.
India is a major wheat producer but has played a relatively minor role in global wheat exports compared to top exporters such as Russia, the European Union, Canada, Australia, and the United States.