Agri Commodities Wheat

Wheat Flour Export Restriction Imposed (India & International)

export of wheat flour

India has put some restrictions on export of wheat flour after imposing blanket ban over wheat exports recently. These restrictions will come into force from July 12th 2022. India’s restrictive measures have not gone down well with global community but really speaking India is not the only country restricting food exports including wheat and wheat flour exports. Extra focus on India’s wheat ban has completely diverted attention from ban of food exports by other countries. Algeria has banned export of wheat derivatives; Egypt is another nation to ban wheat and wheat flour exports. Russia has not only banned wheat and meslin export from its shores but also put an embargo on export of wheat from Ukraine. Serbia is very much part of this bandwagon.

Russia-Ukraine War Triggering Food Export Ban Including Wheat Export Ban By Many Countries

Russia and Ukraine contribute 30% to global wheat pool and after commencement of war between them supply of wheat from their shores got completely blocked. This spiked up global wheat prices. Many countries banned or restricted wheat and wheat flour exports from their shores mostly due to inflationary pressures and to ensure food security of their people. Indian wheat ban and recent restriction on export of wheat flour is also due to food security concerns and inflation. As stated above, wheat is not the only commodity and India is not the only country banning food exports in the aftermath of commencement of war between Russia and Ukraine. Argentina banned export of Soybean oil, Egypt banned maize, wheat, vegetable oil and lentils exports, Algeria banned sugar, what derivatives and vegetable oil exports, Indonesia banned palmolein exports and Russia banned meslin, wheat, sugar, maize and barley exports. These are not the only countries that imposed ban on food exports.

Why Restrict Wheat Flour Exports?

After banning wheat exports why is India restricting wheat flour exports is a question worth asking. Was Indian wheat export ban was not enough that India is restricting wheat flour exports is the question ringing in many minds. It seems Indian wheat export ban didn’t get desired results as wheat exporters started bypassing the ban by converting wheat stocks into wheat flour stocks and exporting. In the aftermath of wheat export ban sudden surge and that too huge surge was observed in export of wheat flour. This alarmed Indian government. Most experts were anticipating some kind of restriction on wheat flour exports. Restrictions to be enforced from 12th July 2022 on wheat flour exports are not particularly harsh and its export will still remain free, only prior permission from inter-ministerial committee on exports will be mandatory. So, wheat flour exporters don’t need to worry and carry on with their business of wheat flour exports from India. Online B2B platform is ready to help every wheat flour exporter in online wheat flour export. This platform is so popular among wheat and wheat flour exporters that it is called wheat B2B and online wheat export B2B marketplace, otherwise this platform is offering services to traders of every agro commodity including rice (basmati and non basmati), edible oil, spices, pulses (lentils), sugar, vegetables, cereals, dry fruits, cotton, meat and beverages.

Nature Of Indian Wheat Flour Export Restriction

Restrictions on wheat flour exports enforceable from 12th July 2022 were put through issue of a notification by DGFT on 6th July 2022. This notification keeps wheat flour exports very much free and only prior permission from inter-ministerial committee on exports has been made mandatory for all shipments leaving Indian shores. Consignments already handed over to customs before issue of 6th July notification are exempt from rigors of this new policy. Loading of many consignments of wheat flour was going on at the time of issue of 6th July notification and export of such consignments will not be affected by enforcement of this notification. The restrictions enforced by current notification apply on refined wheat flour (maida), wheat flour (atta), and semolina (sooji). Point to be noted here is that no restriction on volume of export has been imposed through this notification unlike notification about restriction on export of sugar. Sugar exports have been restricted to 10 million tons while export of wheat flour has not been capped.

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