INDIA — India has approved a policy to restrict wheat flour exports in the hopes of curbing rising prices of the commodity in the local market.

Export of all wheat, including high-protein durum and normal soft bread varieties, were banned by the government in mid-May to manage its food security needs, keeping a window open for overseas shipments only on the specific request of a foreign government to “meet their food-security needs”.

The ban was in response to an unusual heat wave in March which saw temperatures reach record highs, cause damage to standing wheat crop across Northern India and ultimately sent domestic prices soaring.

“There was a policy not to prohibit or put any restrictions on the export of wheat flour,” the Union cabinet said in a statement. “Therefore, a partial modification of the policy was required … to ensure food security and put a check on mounting prices.”

The ban on export of wheat then increased the demand for wheat flour in foreign markets, the statement read. Export of wheat flour from India registered a growth of 200% during April-July 2022 compared to the corresponding period in 2021, the release said.

There was a policy not to prohibit or put any restrictions on the export of wheat flour. “Therefore, a partial modification of the policy was required … to ensure food security and put a check on mounting prices.

Additionally, the war that is raging on between major wheat exporters Russia and Ukraine, who cumulatively account for around one-fourth of the global wheat trade, has led to global wheat supply chain disruptions, further increasing the demand for Indian wheat.

In consequence, wheat prices have jumped to a record 24,500 rupees (US$307) a tonne this week in India, up nearly 20% from recent lows that followed the government’s surprise ban on exports.

Apart from problems with the heatwave damaging harvests, India’s vast stocks of wheat – a buffer against famine – have been strained by the distribution of free grain during the Covid-19 pandemic to about 800 million people.

India is one of the few large countries which is self-sufficient in wheat, thereby avoiding a food crisis, however the government, in staying ahead of the situation, has rationalized subsidized wheat distribution through the public distribution system by replacing wheat with rice in some states.

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