India has agreed to the demands of food processors to allow exports of value-added products by allowing export-oriented units and businesses formed in Special Economic Zones to export flour made from imported wheat, a government order stated on Friday.
According to the ruling, India will permit food processors to import wheat duty-free in exchange for a promise to export flour. India, the second-largest producer of the grain in the world, banned exports of the main grain in March after an unexpected rise in temperatures caused the wheat harvest to wither. This was done to ensure supply for its 1.4 billion people.
India, the second-largest consumer of the food staple in the world, increased its exports of wheat after Russia’s invasion of Ukraine reduced supplies from the Black Sea region, which caused a rise in international prices.
To maintain a lid on local prices, the administration of Prime Minister Narendra Modi banned wheat flour exports in August after banning wheat exports in May. The country’s flour exports increased by 200% between April and July 2022 compared to the same period a year earlier, driving up prices in the local market. The ban on wheat exports increased demand for Indian wheat flour.
Following the ban on the export of wheat, India placed restrictions on rice exports due to the east’s sparse rain, which had an impact on the planting of the most moisture crop. Fears of food shortages have been sparked by India’s protectionist policies in some of the most vulnerable and impoverished nations in Asia and Africa.
Post Your Comments