India mulls lifting flour ban before removing restrictions on wheat exports
India is considering lifting the ban on wheat flour exports while continuing restrictions on wheat grain, despite surplus stocks. Officials cite flour exports as safer for price stability and food security. Wheat procurement and stock levels are strong, but the government remains cautious about grain exports due to potential market volatility.
India is keener on lifting a ban on exporting flour over removing restriction on wheat, a government official has said. Despite surplus stock, India is unlikely to lift the ban on the grain anytime soon.
The government banned wheat shipments in May 2022 and in August of the same year, it also prohibited exports of wheat flour to reign in retail prices and ensure food security as costs rose globally after the Russia-Ukraine war. The two warring neighbours are among the worlds’ leading growers and exporters of wheat.
The export ban on flour included wheat or meslin flour (atta), refined wheat flour (maida), and semolina (suji).
“Ultimately government does a careful analysis based on the demand, supply and price situation in the market. While for wheat, our demand, supply situation is not like rice where we have surplus, but there is scope for exporting related products like flour which is a better option than supplying wheat,” the official said.
This year, the government has seen better procurement levels for wheat. During this year’s rabi marketing season, 29.92 million metric tonnes (MMT) of wheat had been procure till June 30, against a target of 31 MMT. This is the highest procurement in three years since 2021-22 rabi marketing season, which runs from April to June but is extended to mid-July by some states.
Better procurement levels help more farmers benefit from the Minimum Support Price (MSP), leading to relatively stable, predictable wheat prices.
The rabi marketing season for wheat typically runs from April to June, but is extended till mid-July by some states.
India’s wheat stock in stood at 36.93 million metric tonnes till June, sharply higher than 29.91 MMT in the year-ago period.
In May, the agricultural ministry said India may produce a record 117.5 MMT of wheat during the July 1, 2024, to June 30, 2025 period, higher than its March forecast of 115.4 million tonnes.
Despite higher stock and production, India is not willing to take risk of exports, given concerns around food security and any potential rise in prices.
India exported only $2.03 million of wheat in FY25 to countries such as Nepal, Iraq and United Arab Emirates after allowing specified quantities of the grain and related products to select countries as the larger ban was remained in place.
Before the ban, India’s wheat exports had touched a record high of $2.12 billion in 2021-22.
Under the category of milled products, which largely includes wheat-based flour related products, India exported $191.83 million, sharply lower than $310.54 million, in FY22 before the ban.
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Source : Money Control
