As per recent sources, the food ministry has suggested lifting the ban on exports of wheat products that came into effect in May 2022. As per communication with the commerce industry, the food ministry has proposed enabling the export of nearly 1 million tonne (MT) of wheat products initially, keeping account of the prevailing surplus and a robust production outlook.
According to the trade sources, the Food Corporation of India (FCI) open market sale scheme (OMSS) for bulk buyers like Flour millers, which began earlier this week, garnered a warm response. Nearly 69,000 tonnes of wheat were sold through e-auction at Rs 2,550/quintal against the 0.2 MT on offer.
India imposed a ban on the exports of wheat products in May 2022
India used to export flour, maida, sooji, and other wheat products to Africa, Gulf nations, and South Asian countries before the export ban. Notably, India is the world’s second-largest wheat producer after China. However, the nation imposed a ban on the wheat products exports in May 2022 because of concerns over food security, a smaller harvest, and rising inflation.
Interestingly, Flour millers have mentioned to the food ministry that, given the comfortable stock levels and stable domestic supplies, that favours reconsideration of the ban on the exports of wheat products
In addition, traders stated that allowing exports of 1 million tonnes initially would support domestic price stability and enhancecapacity utilization in the milling sector.
Food Minister Pralhad Joshi considers the industry’s demand
It is noteworthy that food minister Pralhad Joshi stated the government would consider the industry demands to enable the exports of wheat products like flour and semolina, along with stressing that food security should not be neglected. According to the agriculture ministry, wheat output recorded 117.5 MT for the 2024-25 crop year, an increase of 3.7% over the last year. Concurrently, Wheat one of the significant rabi crops, its sowing has climbed to 2.27 million hectare (Mha), an increase from the last year.
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