India restricts wheat flour, semolina exports

Banning wheat exports four months ago, India on Saturday restricted the overseas shipment of flour made from wheat, including the wholemeal one, and semolina in order to curb rising domestic prices. 

Some export will be allowed subject to government approval, reports our New Delhi correspondent.

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The Directorate General of Foreign Trade notified of the decision taken by the Cabinet Committee on Economic Affairs on August 25.

Wheat flour exports from India amounted to $128 million during the April-July period this year, registering 200 per cent year-on-year growth.

The wheat export ban triggered a sharp rise in overseas demand for wheat flour alongside a significant price rise in the domestic market.

The all-India average retail price of wheat rose by over 22 per cent year-on-year to Rs 31.04 per kilogramme (kg) on August 22, according to data of India's Ministry of Consumer Affairs.

The average retail price of wheat flour was up 17 per cent to Rs 35.17 per kg. Wheat prices at both wholesale and retail markets have also come under pressure due to a nearly 3 per cent drop in domestic output.