The Indian government has decided to allow exports of wheat flour – under the advance authorisation scheme – by export oriented units and firms in special economic zones (SEZs).
These organisations can only export wheat flour made from imported wheat and not flour made from domestically procured wheat, according to the Directorate General of Foreign Trade (DGFT).
The move comes after wheat processors had earlier approached the government seeking import permission, in a bid to export value-added products.
An advance authorisation scheme allows duty-free import of inputs, which have to be mandatorily used in products that are required to be exported within a specified time. They are not allowed to sell the products in the domestic market.
Amending a August 27 notification, the DGFT said, “to the extent that export of wheat flour will be allowed against advance authorisation, and by export oriented units and units in SEZs, to be produced from imported wheat and without procurement of domestic wheat.”
On May 13, India banned wheat exports in a bid to check high prices amid concerns of wheat output being hit by a scorching heat wave. Later, in August, the government also prohibited exports of wheat flour, maida, semolina and wholemeal aata.
India’s wheat exports stood at an all-time high of 7 million tonnes, valuing $2.05 billion, in 2021-22 fiscal on better demand for Indian wheat from overseas.
Demand for Indian wheat has increased since the war between Russia and Ukraine broke out, as both countries are major exporters of wheat, accounting for around one-fourth of the global wheat trade. Wheat flour exports from India have registered a growth of 200 per cent during April-July 2022 compared to the corresponding period of 2021.
With inputs from PTI
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