New Delhi: In response to the demands of food processors to permit exports of value-added products, India has authorised export-oriented units and the businesses established in Special Economic Zones to export flour made from imported wheat, a government order said on Friday.

According to the ruling, India will permit food processors to import wheat duty-free in exchange for a promise to export flour.

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India, the second-largest producer of the grain in the world, restricted exports of the main grain in March after an abrupt spike in temperatures caused the wheat harvest to wither. This was done to ensure supply for its 1.4 billion citizens.

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 outlawing wheat exports in May.

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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 embargo on wheat exports increased demand for Indian wheat flour.

Following the ban on the export of wheat, India imposed restrictions on rice exports due to the east’s sparse rainfall, which had an impact on the planting of the most water-demanding 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.

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