Wheat exports were already cut sharply in May to bolster national food reserves, following global shortages and soaring prices following the war in Ukraine.
India, the world’s second largest wheat producer after China, will impose new restrictions on flour exports to protect its domestic market, the Directorate General of Foreign Trade has said.
Agreement required to export
Wheat exports were already cut sharply in May to bolster national food reserves, following global shortages and soaring prices following the war in Ukraine.
The General Directorate of Foreign Trade now stipulates that flour exporters will have to obtain prior approval from the government, intended to preserve quality and domestic prices.
“The disruptions in the global supply of wheat and wheat flour have prompted the entry of many new players and led to price fluctuations and possible quality problems”, justify the authorities in a notice published on Wednesday, adding: ” It is therefore imperative to maintain the quality of the country’s wheat flour exports.
India banned all wheat grain exports without government approval in May, drawing heavy criticism and fueling a spike in world prices.
7 million tonnes of wheat exported in 2021
Wheat is the number one cereal crop in India. Last year, the country of nearly 1.4 billion people enjoyed a fairly bumper harvest, producing 109 million tonnes of wheat, of which around seven million tonnes were exported.
This year, a strong heat wave in March and April led to a drop of around 5% in the Indian wheat harvest, raising fears of shortages on the domestic market.
For their part, Russia and Ukraine together account for almost a quarter of the world’s wheat supply.